Was there a casualty loss clause on your purchase agreement? They normally read along the lines of: If any part of the property is damaged or destroyed by fire or other casualty loss after the effective date of this contract, Seller shall restore property to its previous condition as soon as reasonably possible. If Seller fails to do so, Buyer may either terminate this contract or extend time of performance of contract.
Also, carefully read through the default clause in the Purchase Agreement. See what actions would consider you to be in default.
If you have any questions, feel free to PM me and I will do my best to help you. I'm sorry you are having to go through this.