Can Seller do this?

What is the name of your state?What is the name of your state?What is the name of your state? Alabama

On the 17th of March sellers agreed on our price and we all signed a contact. As the buyers we have fulfilled our portion of the contract; i.e., paid earnest money, paid for an inspection and appraisal andour loan was pre-approved and we outbid two other bidders and offered $6,000 over asking price. The house has been on the market for a year and with the above offer we got the bid and had a pre-approved loan, etc. Two weeks ago the wife of the seller said she'd filed Chapter 13 bankruptcy 3 years ago but that had no bearing on our being able to buy the house from her and her husband. In fact, in the disclosure statement it asks specifically if there is any liens or financial problems, including bankruptcies, that would prevent the sale of the house and they marked "no."
Yesterday, our realtor called and said the sellers have backed out selling the house to us because: they thought they'd only have to pay 3% towards the bankruptcy in the sale of the house but have found out they owe 30,000 and do not want to pay that and so they've told us to take a hike.

What recourse do we have, if any? We are scheduled to close on the 29th of April and at present I'm waiting for their realtor to get with our realtor. My realtor says they signed a binding contact and that they have to sell us the house. I'm not so sure...do we need an attorney or do we say to heck with it and keep looking? The house is what we wanted in every way...style, price, land...and is unique...built in 1870 and there's nothing else like it around that area at all. I'm not sure what to do next.

What recourse do we have, if any? We are scheduled to close on the 29th of April and at present I'm waiting for their realtor to get with our realtor. My realtor says they signed a binding contact and that they have to sell us the house. I'm not so sure...do we need an attorney or do we say to heck with it and keep looking? The house is what we wanted in every way...style, price, land...and is unique...built in 1870 and there's nothing else like it around that area at all. I'm not sure what to do next.

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Since you have a contract, you could go to court and force "specific performance" -- basically the court would force them to sell the house to you under the contract. However, that will require you to hire an attorney and file a case in your local superior court -- whether that is an expense you want to take on for this particular house is up to you. You can talk with a local attorney to see how much it might cost and how long it might take -- but it might be better to just see if you can find something else, and avoid a court battle.

Average (Estimated) Cost to Fight a Specific Performance?

Our realtor says the sellers have shut down talking about selling the house to them at all and refers them to their lawyer. We've not received anything in writing saying they're not going to close so my realtor said we're moving forward toward closing. My advice from you guys was to seek specific performance if the house is worth it to us...I'll be talking to an attorney once my realtor says we have nothing left but that...do you have any idea on average, what the cost might be? Our sellers are in the 2nd year of chapter 13 and are pissed because they've got to pay so much towards the bankruptcy bill instead of pocketing it for another house they want...
Thanks for your prior advice...I have to tell you it's really upsetting to have this happen...I've been looking all over the internet and there is NOTHING around for that price or for that type of house.
What is normally required to file a specific performance? Please be patient with me...this has never happened to me before...I appreciate your help and any advice you may give.
Thanks.

Here is a specific performance supreme court case in alabama.

The supreme court makes their decisions based on State Legislation, other appeals and trial cases. You might want to research some of the listed cases that may relate to your situation a little better.

But specific performance, no matter the Profession, is defined the SAME.