Thank you. If the seller is not releasing the money, and the contract has a clause that if the buyer does their due diligence to get a mortgage and do not, then the would-be buyer should get the money back. However, the seller will often attempt to keep it for some reason, often claiming that the would-be buyer did not do their due diligence to attempt to get the mortgage.
If so, the would-be buyer can file a lawsuit against the seller in the magisterial district court. See HERE. The would-be buyer would have to show that they did everything reasonably possible (i.e. due diligence) to get the mortgage approved, but did not, and then can get their deposit back.
A letter threatening to go to court will often do the trick without needing to go to court. Let me know if you need a sample letter, although it is better that it comes from an attorney's office representing you.
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