Option One Mortgage Company Will not refund earnest money Irvine California

I recently put a contract on a house that was a foreclosure and is owned by option one mortgage corp. I signed a contract and put $500.00 earnest money on the contract. Needless to say the house is in alot worse shape than originally thought and my finance company would not finance me. I was told before i sent the money that if the deal did not go through i would receive it back but now they say they are keeping it. Its unfair that a big corporation can do what they want at the expense of the little guy. I am not rich and now i have to wait to buy a house because i have to save money to counter all that i have lost in this deal. I will never deal with them again.

Doug
Chaffee, Missouri
U.S.A.