Highlands Mortage - extended rate lock - crooks or standard procedure?

[Wendy Stclair]

Has anyone dealt with extended rate locks and also this company Highlands Residential Mortage out of Essex Florida? I've got an extended rate lock on a SFH with Graham Parham and Aaron Stelly at Highlands Residential Mortgage out of Essex Florida that is from a year ago and due to reasons beyond my control the loans will not close before the rate lock runs out - and may never close at all. This was a lender referred to me by the builder and last year I locked thinking the properties would long be built by now. They had at the time demanded upon signing this rate lock that i RUSH them $1680 per loan to hold this amount (x2). Now a year later as the properties are not close to closing through NO FAULT OF MY OWN, they are insisting that the only way i can receive a refund of my $1680 deposit (x2) to them to buy something else from them. Is this standard in the industry? my initial contract from them states with clarity in the disclaimer that i should be refunded:

"IF the loan does not close before the expiration date of the lock-in agreement through no substantial fault of the borrower, the borrower may withdraw the application whereupon the lender shall promptly refund to the borrower any lock in fee paid by the borrower." 

BUT there is also a statement in some other addendum that i signed saying that "the deposit is non-refundable and will be forfeited to the lender if borrower does not close with highlands residential mortgage LTD for any reason other than denial. "

So i guess i'm SOL if this project does not go through. The rep has told me i can use the loan to buy other properties but how flexible they will be is not clear to me.  I'm curious if others have experienced similar shady business operations or if i am being unreasonable here?

thanks 

Wendy