Buyer wants release few days before closing

[Vadim Lichtik]

Hello everyone!

New to BP forum, heard only the podcasts and seen the webinars up until now. Great info!
I'm a flipper in Indianapolis, listed a property after a long rehab (first flip of mine) and got a buyer!
Buyer did an inspection and we agreed on the items to be corrected. 
Second inspection is dated to 7/14 (postponed from 7/13) and the original closing date is 7/16.

All items were corrected and report sent to the buyer. 
Yesterday I've received the following message from my realtor:

"I just heard from the realtor and she said the buyer is having major second thoughts about buying this house and is wanting to do a mutual release. I haven’t received that yet but I told her we wouldn’t return the earnest money deposit if they backed out now. She also told me the lender had not even ordered the appraisal yet. So I’m waiting to see what she sends right now. But it looks like we may be putting it back on the market."

What recourse do I have since the buyer is backing out due to cold feet?
I do want to keep the deal and get it over with, plus I invested additional sums to make the corrections as the buyer required.

Thanks in advance for you replies.