Legal Question in Real Estate Law in New York

I do not know who was holding the deposit - attorney, a broker or the Seller? I suggest writing the attorney, by certified mail, return receipt requested, demanding the immediate return of the deposit. If you were formally rejected by the Seller, in writing, the withholding of the funds by an attorney may be actionable. and could be reported to the local bar association. I have not seen the contract or any other documents, so I cannot provide a response to your other questions. This is a response to an Internet question and the reply is based upon the facts presented. If facts are missing or different, the reply could be different. The reply is not intended to be legal advice or as creating an attorney-client relationship.

If this is a New York transaction and sellers attorney had the check in the escrow deposit, then once the conditions were met and you were denied financing, the down payment should have been returned to your attorney. I suggest sending a letter to your attorney demanding immediate return of said deposit. Maybe going to see your attorney would be a possible option. For more information you can always inquire with the office of court administration.