We lost our house and can't return the money

We made an upfront payment of $3500. In the end our house was sold on an auction. We hired a lawyer to return our money, because they won’t give it back. They have lied to our mortgage company about our income, that’s why we lost the house. We are desperate now, as we don’t have anywhere to live. We are staying at my aunt, my whole family and I. I would just like to warn everyone out there not to repeat my mistakes.