Legal Question in Business Law in California

It depends on whether the contingency in the agreement was satisfied. This would require a review of the purchase agreement.

Your question makes no sense. The lender and the bank are one and the same. You need to resubmit your question.

My guess is that the "lender" and the "bank" are not the same - that the lender is a new lender working with the buyer, and that the bank is a former lender that foreclosed and now owns the property, and might better be described here as the "seller."

If that's correct, I'd tend to agree with Mr. Cohen. Your facts tend to point to a situation where the buyer may face forfeiture of his deposit, but it is not a foregone conclusion that he will lose it, or even part of it. Deposits are forfeited if they are a reasonable beforehand guesstimate of the non-defaulting party's damages, the contract or escrow instructions call for forfeiture upon default, and a default has occurred - such as a failure to close on time after contingencies in the buyer's favor have been satisfied or waived. Financing may be a contingency that would prevent a default and forfeiture.