is it too late to sue my landlord? need legal advice asap!

[analiesa]

so, almost 3 years ago i was seeking a 2/1 place to move into, i came across a lady who seemed very kind @ the time who was willing to rent me a small place she had. the place was still supposedly being touched up on a few minor things that needed to be done in order to be approved for move in by section 8. my fiance & i had went to see the place. after we agreed on the place. we met up with her to talk over the place , to do paperwork and being that i had a short timeline left to find a place we settled and gave her $500 for the deposit on the place. so as time goes on i go look @ the place again taking with me my aunt fiance & son it was apparent the place still needed work as were walking through the bathroom theres roaches! at that time we were talking with her tenant which was also her handyman for the place i was suppose to move into we told him what we had seen, and he said we shouldnt trust her because she does everything "half-ass" we stated we had already given her $500 for deposit and he said we shouldnt have because she gets over on people alot and she was recently sued for trying to keep a tenants money. so a few days go by im worried bout when the work will be done so we can do the inspection and she called me asking for more money the place still hadnt been moved into mind you, i then told her i will give her more money when i know the placeis gettingworked on morless when its done and i know its up to standard to pass the inspection after all thats what we agreed on, so she gets angry stating that she is withdrawing the lease & will not rent to me, i got angry and said thats fine then i want my deposit back, she said i aint getting anything back! i became very upset, calmed down then called her to talk like adults, so as far as i was concerned she was still going through with it, then the day of inspection comes and she is a no show!! i call her and ask where is she ? we have an inspection with housing she has to be there, she then says no i dont have to be there cause im not renting to you ive already called housing! i got so upset i started crying my mother was with meat the time, and i told her wtf do you mean you're not coming you agreed on renting to me and you have my money?? she says i asked you for more money you didnt pay it so im not renting to you! i was yelling telling her then you must give me back my money she said im not getting a penny and hung upon me, my mother tried to call her back and she yelled at her and hung up! i then called housing informed them of what was going on & they said she had not called anyone there theres no message of ant kind informing them of her decision! so she had lied she just didnt show up. over the weeks i called and called 1 time she answered and said that she will figure out what i owe her for her holding the place for me, i said how can you charge me if i havent moved in you have the deposit to hold the place so i can move in it, and im not so none of my deposit is owed to you! IVE NEVER LIVED IN PLACE!! even so during the time she was suppose to be holding it she was still showing it to other people. i then said id take her to court she said then do it! i never did i dont know why i just hate the whole court idea and all but everytime i think about it and being that im struggling financially already why just let her get away with it?? i brushed it off over and over, but it infuriates me and i wantmy money back! so 2 years have passed almost 3 ! is it too late formeto do anything about it?? or can i still take legal action? if i do have a chance to still take her to court can i sue her for interest?? being that she has kept my money for so long? but more so arent there penalties for things like this to make her pay more for what she has done? please help me with your opinions! greatly appreciated god bless!

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is it too late to take landlord to court for deposit repayment?