My husband and I are in contract to close on a property in CT on 8/1/13, however our mortgage loan has been denied. We are currently seeking another loan with a lender. According to the attorney who was referred to us by our agent; if we do not have a home loan on 8/1/13 the sellers will keep our entire earnest funds. Please tell me if this is legal, if so please let me know where on the contract I can find this stating the seller is entitled to the full earnest funds. Thank you.