Signed Contract, No closing : Lawsuit?

[Alex Young]

signed contract for 125k 30days for closing ..... Day of closing! , seller's agent notifies that the seller has a 31k lien on his persons for refinancing his student loans (title company found this on the last title search).... house does not close. He now will not sign an extension, even though I agree to give him time to get the student loans taking care of . Seller's agent admitted that there is now a back up offer on the table,..... has not admitted that this is under contract with new buyer but the MLS says pending.

This would be flip, with an ARV of 225k ...... estimated rehab 50k, missing out on +50k profit ..... so its a good winner, want to fight this out.

Any advice, stories of this happening?    Talking with attorney now.... possible suit of lost profits?. If they go under contract with someone else then I believe its fraud toward my contract. 

PLEASE HELP!!!