Escrow dispute with Financial contingency

[RJ Dixon]

Hello BP!

So I have a dispute with a seller trying to hold on to my earnest money. The money is only 5k but still. We had in place a financial contingency and Both lenders denied the funding for that property. I was trying to do a house hack but both lenders were not able to fund it after the told me they could. The banks were quicken loans and Trustco. ( 5% down conventional ). The property was 2 free standing homes on the same parcel and Tex deed. I was always upfront with them and told them my plan. Our numbers are good the problem was the property. Any rockstar lenders out there?? Anyway they want the full amount because they think they are owed it. I spoke to the title company which is a lawyer and told me this would be a expensive process. I’m calling bluff on the listing agent trying to bully. Thoughts, tips ? How can I do better getting funding ?

Cheers

-Rj