Should I ask for earnest money back?

[Jay Stein]

I recently entered into a contract to purchase a house using FHA financing, expecting to move into the house. Due to personal circumstances, I no longer intend to occupy and have thus decided that rather than skirting FHA rules I will no longer purchase the house (cannot obtain traditional financing). The seller is demanding all the earnest money, despite my realtor having already found him another buyer without having to put the house back on the market (did not offer me the option to actually assign the contract). I think my inability to obtain the financing initially contemplated voids the agreement. Am I wrong to ask for my earnest money back, or at least some of it?