Deal not going to close - Pay the Title Company?

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I have a property under contract to purchase for rehab that doesn't look like it's going to close due to a high dollar judgement due that the seller cannot pay. Obviously the title company has done a fair amount of footwork already. If the seller can't close, does/should the title company get paid? If so, who pays them? I plan to use them again in the future, would it be in my best interest to go ahead and pay them? The wholesaler has already offered to cover my appraisal.

I am also wondering where this property will end up. The owner has already moved out. I assume she has, or will soon stop paying her mortgage. Should I hang out and still try to get the property? Or should I take what I've learned in the last 45 days (this was going to be my first rehab) getting ready to close this deal and and look for a new deal. My estimates had about 15-20k in profit in this deal. ARV appraisal was $105k. Thanks for any help.

Dave