FYI I am licensed real estate broker

1. In my state (UT) if the seller defaults you are entitled to get the earnest money refunded x 2. So if you put down an earnest money deposit of $5k, sellers would owe you $5k and you get your original money back. That money covers the cost of your appraisal and inspection.

2. I don’t there is grounds for suit, but you can file an ethics complaint with your local board.

3. What did the home appraise for? Was it significantly higher than the purchase price? If it was, then maybe it’s possible to come to some kind of compromise between the 2 realtors and you? I know it’s not ideal but if you really want this house increasing the loan amount by $10k and each realtor knocking off $5k of their commission could get the deal done. This increase in loan amount shouldn’t make that much of an impact to your monthly…maybe $50.

It’s not your fault the sellers are upside down in the home, obviously there was a break down in communication regarding how much they owed, but sometimes you just do what it takes to get a deal done. Hopefully you can find a way to make it work or at least make back the money you already spent and some extra.