How much footing do I have with my landlord and our lease?

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WEISWEISBABY

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On 2-11-09 our landlord informed my wife and I that she and her family wanted to move back into the house that we had been renting from her for nearly 2 years. She stated that she would let us out of our lease (which runs through June) if we found a place as well as provide us with a letter of recommendation. 9 days later on 2-19-09 we informed her that we had found a place. This is where things take a twist. She was shocked we had found a place so quickly. We realize that we may have to foresake the deposit 750-800$ as a result. We have written documentation from her that acknowledges she would let us out of the lease, paperwork which states how good of tenants we are and an audio recording of her in which she acknowledges the arrangement. (You can record by law any conversation that you are directly involved in btw.) I too believe that she has spent our deposit $ and that it has not been secured in an account. I believe I read where this might be an issue which would void the lease? I have been in contact with 2 area lawyers but as of yet not heard back as to how strong of a case I have should things progress. Ideas? Help?
 
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