What happened?

After 5 months on the market and 30 showings without an offer, my father's house finally got an offer.  We have the signed purchase and sale, the inspection went without a hitch, and I busted my ass cleaning the house out mostly by myself with some help from Tasha and Curtiss.  I didn't get rid of all the books and records until 2 days ago.

Despite numerous calls to both agent and lawyer, I have been unable to find out when and where the closing will take place.  We had a date--Aug. 29--on the contract, but no one has been able to reach the buyers.  The agent told me this evening that the buyer's realtor has been trying to reach him for 2 weeks and leaving messages, none of which resulted in a call or email back.  I can't think of a good reason for this.  Why would they go the distance and then run away from the deal?

Curtiss did some research on the buyer online and made a shocking discovery:  a young man with the same name as the buyer (and who lives in Conn.) was arrested for sixth degree larceny in 2011 for attempting to steal an air conditioner from a store.  I know that real estate agents can't vet their buyers, but how could this happen?  Our house was under agreement with a criminal?  The name is not a common one and it must be the same person.

The only reason I can think of that he has not been answering his calls is that he's on the run from the police.  Could this get any worse?

I sent a link to the newspaper article describing the crime to the lawyer representing us at the closing.  I asked both of them if all the financing was in order and if the real estate office had received their down payment (it was a small one because they have a special loan from the USDA with full financing and only a $2000 down payment.)  It's a lot easier to turn your back on and forfeit $2000 than $20,000. 

Now what do we do?  I have spent months getting furniture, antiques and books sold from the house, and only the other day gave the final sweep to the floors.  I wasn't worried that anything would go wrong.  My brother and Curtiss, who worry about everything, were worried and this confirmed their worst fears.

I might have known that it was too good to be true.  Here we were thinking we had finally found the perfect buyer--do it yourselfers who wanted to fix the place up.  Reasonable people who waived their rights to inspection for lead paint and radon.  People who said that any books we left on the shelves were OK with them.  I told myself they were nice people and I looked forward to meeting them at the closing.  Now I discover that the husband is a thief.  Shock, bewilderment, and even heartbreak don't even begin to describe my feelings.

We will have to shut the house up for the winter because we can't afford to keep the heat and utilities going without a tenant to pay them.  There's no furniture in the house, so how could we rent even if we could meet the stringent landlord requirements?

I haven't told anyone about the buyer's rap sheet.  I don't know how to tell anyone.  It was bad enough having to tell my brother that the buyer has simply disappeared and is incommunicado.

My aunt Joan says that there will be another buyer and not to make myself crazy over this.
But I can't sleep.  I don't know what to do.  There is nothing I can do.  Can we hold them to the contract?  Did they even succeed in getting the loan?

We've spent over $4000 to the law firm, so they'd better give us some good legal advice.
I need some answers.  It's not so bad that the closing isn't taking place this Thurs. as planned, but a buyer missing in action?  Maybe on the run from the law?

Why is this happening when I worked so hard to bring about the sale?