Deal feel through... attorney won't release my hand money!

[Jerry Kisasonak]

I entered into an owner financed deal. The seller wanted to use their attorney to handle the closing. I sent $600 hand money to their attorney as was required in the sales agreement. After the title search came back I was told that there was a line of credit on the home. That obviously killed the owner financing arrangement. The outstanding loan balance  exceeded the purchase price - the deal is off.

The sellers disappeared. Now the attorney is refusing to refund my hand money stating that they incurred a cost of $473 for title abstract, lien letters, etc. I told him that it was not my fault that the deal didn't close and that he need to take that up with the sellers. He said he has tried to and they aren't returning calls. He kept saying that he was not going to eat that expense. What is my recourse at this time?