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I was in a contract for Short Sell . Got the approval from seller’s lender and paid my down payment. My loan is also funded at Title Company. Just before registering at county Title Company found that the Seller has filled bankruptcy.

Now my situation is:

1) My daily interest has started.
2) Title Company and my lender are just waiting for bankruptcy court order, as per seller’s attorney it will take some time (not sure how long).
3) I wouldn’t worry at this stage if I get this home or not
My questions
1) Is there any norm for Title Company to close escrow in specific time period?
2) In this situation what are my rights and obligations.
3) How do I gracefully come out of this situation without paying extra money? Obviously I don’t care even if the deal doesn’t go through.

Any advice is greatly appreciated.