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Disclosure of Foreclosure?

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We entered into a contract on a piece of real estate. The contract had a contigency on "being ratified by the sellers bank". What we were not told was that the property was very close to being forclosed. We quickly had a home inspection done and applied for a mortgage (within 5 days). We were told the "ratification by the bank" would be 4-6 weeks. That time has passed. We were told the bank would not provide a yes or no answer at this time. We did find out that the property was being forclosed on by another source after we had already had the inspection and applied for the mortgage. If we do not close by the date specified on the contract we will also lose our interest rate. What recourse do we have to recoop our loses including the inspections, mortgage application fees and deposit?

 



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