Legal Question in Real Estate Law in California

Seller terminated new home purchase contract and sell to other at higher price w

We signed $292K purchase contract with the builder 1/18. We decided to use outside lender A. Builder told us Closing date is delayed to 6/30 and we need to send in approval by 4/30 or our contract may be cancelled. Lender A sent in the approval but can't sign the Outside Lender Addendum(reqires service 5 days before closing) so it was forwarded to the A's Legal Department and an earliest decison will be made on 5/3/04. Builder can't accept Lender A if A can't sign the addendum. We asked Builder what are our options and was told either go back to the Builder(Lender) or go find another lender that would sign the addendum. We can't get hold of the Builder Lender(no call back) so we went find a local Lender B who agree to sign and give us approval in 2 days to meet our 4/30 deadline. All docs are faxed to Builder on 4/30 and we thought we should be fine. 5/4 we called and found out that our purchase was cancelled because the LenderB had approved it as 'Secondary home' while the contract requires it to be 'Primary Home'. This was a mistake that can be corrected but Builder didn't even try to call us. They sold our home to someone else at $330k without notify us on 5/2 and sent us notice of termination on 5/4. Any advice is appreciated.

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