We gave a down payment on a house in Oct. 2011 and it is now May 2012 and we have not gotten the house or our money back. The guy used our down pyment to fix on the house and kept changing our closing date further and then finally in March 2012 told us that we didn't get approved for the loan. That he was going to give the money back but till he sell a house. That could be a long time. Plus he had told us the house was ours weather we got approved or not. Because he would carry the note and now saying he can not do the that because the house has a loan on it. Please help it not just a couple of thousands its $18,000. I know we need to get legal advice but we can not afford it at the moment. My husband is the only one working and I have been unemployed for almost a year.

Do you have a signed contract with the seller, and did it specify a closing date? What does the contract say regarding time frame for you to work out approval of your loan?

Did you just give him money or was there some form of contract. Please don't tell me you guys just handed over $18k in good faith...

There is a contract, it stated closing date Oct.30, 2011 but he kept moving the date due to the house not be ready. And finnaly when the house was ready. He told us that we were not approved for the house. But that at that time he didn't have the money because he had used it to fix on the house and would need to apply for a loan. But then said he had to many loans out and could not get one at the time.

So the contact provides a date for the closing (Oct 30, 2011), but it should also have a clause similar to this:

"If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may enforce specific performance, seek such other relief as may be provided by law, or terminate this contract and receive the earnest money, thereby releasing both parties from this contract."

Does your contract have this? If so, and if he's defaulted on the contract you will have to sue. I know you said you don't have money for an attorney, but $18K is more than you can collect in small claims court.

One thing I don't quite understand - why is it that the seller is telling you that you are not approved for a loan? Aren't you getting a mortgage through a bank? If the plan was that the seller would carry the note for you then the terms of that loan should have been spelled out in the contract - so I don't get why the seller is now telling you that you aren't approved?