Down payment on a house not refunded!

[dago]

North Carolina. After being told by the guy that we were renting a room from that we would need to move out in 30 days, my boyfiend and I were going to try to buy a house. We went to Greenfield Housing with hope that they would be able to help us. We knew that it was short notice especially to buy a house but the sales man reasured us that we would be able to close on the house before our eviction date. He also told us that the sooner we gave him the down payment the better our chances were in getting approved for the house. Something about if the bank seen the money already in there that they would approve us quickly. I thought that this was too good to be true and boy was I right. We went straight to the bank and got a check for $3785 and rushed it back to him. The money was taken out of our account the day after that. We waited on the approval patiently because we knew that the process was going to take some time. It seems like every other day we were having to drive all the way to the office to sign papers or bring bank statements and other documents. It wouldn't be so bad if the office wasn't 45 minutes one way. But we did everything they asked of us because we thought that they were rushing things just to help us out. Towards the end of our 30 days we were getting nervous because there was already someone getting ready to move in to take our room and we still didn't have an approval. After our 30 days were up at our current residence we had to ask for an extension because we still didn't have a house yet. Our room mate said that it was ok but the other family was still moving in because they had to be out of their apartment at the same time that we were supposed to move. So now there are 8 people living in a 3 bedroom house instead of 4 and tension is rising. We stick it out until the 10th which is when the salesman calls us to say that if we put 20% down then we will be approved right away. Well we don't have that kind of money and we also had to rent an apartment because we couldn't stay at the house any longer. When we went to ask for our downpayment refund the salesman acted like we would have to pay something because of all the work he had put into the deal. The costs of the appraisal, etc. In the beginning we had signed a "contract" but also on that contract it is handwritten by him saying that it was just a worksheet and that neither the buyer or seller are obligated to it. Well i recieved a call from the sales man saying that he has spoken to the owner of the company and his boss and they have decided that we do not get any of that refund back. So my question is do I have the right to receive a full refund of my down payment?

[dago]

anyone please need some advice!

You do yes---the entire transaction was misleading if not outright fraudulent.
Based on what you say here, you could file suit against him (or at least threaten to do so) in small claims court or in regular court; filing in small claims court is easier and requires no attorney...you could try to collect all of the costs and damages that you suffered due to his behavior... You may also report him to your state attorney general's office.