What happens when a seller backs out of a signed contract ?

[Anita Gee]

I had a house under contract as of Feb, 28th. Mind you this is my first wholesale deal. The seller said he had to move to California. I found a buyer Last week and we signed assignment contract today. To good to be true right? So, I faxed over the original contract and assignment both to my attorney to help me through the wholesale process and my assignee's attorney. A few minutes later I get a call from the seller saying something came up and he is no longer moving. Sounds a little suspect. I informed my attorney and my assignee right after. Has this ever happened to anyone? If so what happened next? I didn't know you could just back out of a contract that has not expired and with earnest money given etc...Another good question is what would happen if I never found a buyer? I am awaiting to see what the attorneys decide to do...