Were you working with an agent? Did you receive any compensation from the seller for their breach in cancelling the closing? How were the sellers not aware that they were not going to be able to satisfy the mortgage at the time of accepting your agreement? Look at your county's sheriff office website and see if it has the list of upcoming sheriff sales. If the home is going into foreclosure then it should be listed on the website because it's at this sale where the mortgage company essentially "bids" and gets the deed back. Alternatively, the sellers may have done a deed in lieu of foreclosure in which they handed the deed over to the bank directly.