Charlene, did you have a real estate professional working for you? Do you have a valid contract?
Sometimes when you deal directly with the owner, you are putting the money in the owner's hand and not in an escrow account. Now the money is spent and you are stuck. Here is my best advice to you...get a good REAL ESTATE ATTORNEY and see how he/she can help you.
I wish you good luck. If you have any other questions, please contact me.
ReMax Action Realty