Thank you Ma'am
It is possible to place a lien on the property...but only with court action.
What you describe? You have a breach of contract. You had a contract, with a provision that allowed you to withdraw from the contract if you were unable to obtain financing.
Contract law imposes a duty on all parties to "operate in good faith"...so you were required to make a good faith effort to obtain financing. If you did this...if you applied for a loan on this property and were denied the loan? THen that would be grounds to withdraw from the contract.
If you provided notice to the other party (the seller) and they have refused to release your money? Then your next step is to sue them. You can sue them for the $5K they owe you. When you win the lawsuit, if they do not pay the money, then you can file a motion with the court to have their home attached (sold) to satisfy the judgment.
So it is not possible to place a lien directly (like, for example, if you were a contractor
and did work on the home...the law would support a lien in such a case). But if they refuse to pay, you can sue them, then when you win you can ask the court to force the sale of the home to allow you to recover your losses.
What you describe you have a great case. And in CA you can use the small claims court to address this (avoid the cost of hiring a lawyer)
But you will need to go to court to force this...state law does not provide a mechanism to allow you to place a lien prior to a court order.
Let me know if you have more questions...happy to assist if I can.