Woodside Homes of AZ INC. Refusing to return my Escrow money. Mesa Arizona

I signed a purchase agreement with Woodside Homes(at Villages At Westridge Park-Phoenix, AZ) on 8/31/14 and the agreement was contingent on financing. I asked the sales representative Martina Villela multiple times if I would get my escrow money back in the event that I was denied by the lender for a mortgage. Every time I asked Martina this question she told me that I would get it back. I initialed a contingency clause in the contract, and the sales rep. Martina wrote in the other conditions that apply section "Contingent upon financing."

 On 10/07/14 I received conditional approval from the lender. But, later on 11/20/14 I received a denial letter from the lender due to the decrease in my hours at work, which failed to meet the conditions required for approval.

 On 11/22/14 I went in to speak with Martina Villela at the sales office. I showed her the denial letter which she then forwarded to her boss Dana Spencer. Dana Spencer then called Martina while we were in the sales office and wanted to talk to me about the denial letter. She was very rude and would not listen to what I was saying. But, I told her why were denied by the bank and that based on the financing contingency in the contract that my wife and I should be returned our escrow money. Dana Spencer refused to give our escrow money back and hung up on me.

 Later my wife and I sent a certified letter(11/24/14) to Woodside Homes requesting our money back and listed all of the clauses in the contract that said we should get our escrow money back. Dana Spencer responded and still refuses to give our escrow money back. Then my wife and I sent a second certified letter(12/4/14) to Woodside Homes to try and resolve this issue, and Dana Spencer sent a rude email response stating that Woodside Homes has not changed their mind and they are keeping our money.

 We believe based on the contract that Woodside Homes has no right to keep our escrow money and they are just trying to scare us because they are big corporation and they hope we will back down. They are not incurring any prejudice or harm because they have re-listed the home for sale and are asking more than what our contract sales price was.