She should be able to get her deposits back.
She should just go see the builder and tell them that due to personal financial reasons, she can’t go through with the contract. It’s done all the time and they should return the money to her.
Since no escrow has been entered into, the builder doesn’t want her to make a big stink about it and possibly affect future sales to others. The builder also would not want to force her enter an escrow that would not close.
