I had a contract to close on our first home on 4/30th. Six days before closing, our agent tells us that the sellers do not have 28k to close. The sellers said they are pursuing a bank note or will file a short sale. This home was not advertised as a short sale. The title company attorney wrote a letter to the sellers saying if they did not close, we could sue them for specific performance and damages. The sellers said they are going through a divorce and if we sue them, they will file bankruptcy, and we get nothing. So when 4/30th came, so the seller's signed a two month extension on our contract to close on 6/30th. We also signed a short sale affidavit of arm's length saying we are not trying to defraud the bank or related to the sellers. If we close by 6/30th, we will still get the 8k first time home buyer credit. Well, I was told today, the sellers got denied a bank note and are going to short sale the home. However, our contract expires on 6/30th which a short sale would have to be approved in about 45 days. I've already paid $400 inspection, $400 appraisal, I will be charged mortgage processing fees, possibly buyer agent fees, I will lose the $8k home buyer credit, and I had to move out of my apartment because I gave a 60 day notice to vacate and suffered moving expenses. The seller agent did not go over the seller's finances to get the right price on the home and the title company did not find that the seller was behind in the mortgage until the last week of closing. Do I have any recourse against the seller, seller's agent, or title company?