(Plus I am willing to allow my moral compass may be skewed toward legality;)).So, thanks Conor Flaherty for the post.

I suggest beginning with the calibration of a moral compass as to what ethical might before starting any new plan.  

Thank you for the honesty, integrity, and compassion that you display.

No one can or should give you legal advice here in the forums, so my first advice would be to ask a real estate attorney here in Florida what your options are, after they review your contract and the associated documentation and correspondence.That being said, you may very well find that the executed written contract is binding, and the seller may have a hard time getting out of it just because she changed her mind.Thus it may come down to your moral compass - do you feel better taking the deal with this stigma attached, or walking away and finding another one?

While we are in the business to make money, we also have a moral responsibility to not be so hard nosed that we lose what makes us human, that being compassion.

You should connect with @Michael Haas from Compass Realty.

This will f*** up your moral compass for the rest of your life.Show some backbone and pay back what you owe.

----------------------------------------------------Wow, such compassion you profess!

If you plan to do this with occupied properties as a business model you may want to check your moral compass!

Those a strong moral compass, high integrity and willingness to strive for a win / win outcome are the ones who usually stay in the game.