My question involves real estate located in the State of CA:
I submitted an all cash offer on a property in CA on 7/30/08, with an escrow deposit of $2k. I never gave a check to my agent, rather I emailed him a scanned copy of the deposit check. I still have the actual check. I specified on the offer a contingency of 10 days for inspections. After counteroffers and so on, the contract was fully executed on 8/11/08 with closing scheduled for 8/22/08, and a hand written addendum that deposit is non refundable after 5 days. I did not initial or sign next to the hand written addendum. Although I did initial on the bottom of the page where this handwritten portion was on. I called my agent on 8/17/08 to cancel the contract, and he had me sign a cancellation the following day. I get a response today that the bank (this is an REO) will not sign my cancellation, and wants me to release the deposit to them.
Do I have a valid claim to keep my deposit?
How would the bank collect if I still have the physical check and funds were never deposited by escrow?
Since I did not acknowledge the handwritten portion with a signature, is that portion not valid?
How likely is it for the bank to sue to collect the deposit? I no longer have the money nor the check, so it will be like squeezing blood out of a turnip.
Thanks in advance.

