Seller wants to back out. We have a contract. What should I do?

[Robert Kriedermann]

I'm dealing with a seller that is driving me up the wall. She contacted me to buy her house, I made an offer and after some negotiating, we had a verbal deal. She changed her mind several times and even got cold feet when I had all the paperwork ready sitting at her dining room table. She even got a bit nasty at one point but the whole time my message stayed courteous. I'm here to help with a cash offer if you want to sell. Eventually she apologized and we had an accepted contract. She has bad credit and no bank account. She wanted cash paid directly to her as earnest money so she could pay for moving expenses and put money down on a new place. After she changed her mind so many times already, there was no way I was just going to hand her cash but we agreed that with an accepted offer, I would give her cash and record a mortgage against her property for that amount.

Now after driving her to and from the title company to have them help explain things and record the mortgage, giving her cash, a trip to her house when swore she wanted to sign but then got cold feet, responding to all her mood swings via long texts and phone calls, she says she changed her mind and doesn't want to sell. 

We have an accepted offer and I have a mortgage that is in processing against the property (that I had to pay to record by the way.) She has my earnest money but says she will give it back in a couple of days. She sent this info via a text an hour ago and I didn't reply. She might change her mind again as she is known to do. How do you think I should handle it?

Technically I could sue for performance but how would that go since I'm a real estate investor and she is living in the property? Not sure the judge would look at that too favorably. I have the mortgage against the property and I might even be able to foreclose but that seems harsh. She would probably trash the place too. If I won some suit I don't think she has any money to pay me financial damages. It's been a huge amount of work dealing with her though and I'd hate to lose a good deal. I don't want to be a bully real estate investor but we have a contract and I've put a lot of work in. What say you?