Please HELP!

[Hilarie Marsiglia]

After 6 very long months, my husband and I were approved to buy a short sale. We went to closing on Friday and the seller and us (the buyers) signed all the documents. The title company informed us that they were still waiting on a pay off statement from the sellers bank. The seller had 2 mortgages both accepted our offer but then on Friday, the 1st mortgage holder ( who is receiving the full amount owed on the loan) will not send over a pay off statement!??! The title company was on the phone with the mortgage company all day Friday and was hung up on several times and it is still not resolved! The 2nd mortgage holder agreed to extend closing until Monday but no longer. Why would the bank that is going to be paid in full refuse to send a payoff amount so this can be finalized? It makes no sense at all to me. They have not received payments from the seller for months what benefit is it for them to not want full payment and avoid foreclosure?? Who is responsible for obtaining the payoff amount? It seems crazy that one simple little piece of paper is going to make this deal fall through and we have sold our current home so, we will no longer have a place to live if this falls through. Do I have any recourse? Who is responsible? Can a bank legally withhold something and block a sale without any recourse? The title company and real-estate agents both said they have never seen a sale get this far along and fall through. The title company even has all our funds! Please help!