In escrow since4/22sch.to close5/29 now seller want to put house back on market, breach of contract?

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I have been in escrow since 4/22 buying prop. from Fannie Mae, bank owned REO.  F.M. agreed in beginning to install carpet and fix water leak.  Since 4/22 F.M. has done nothing to order work and escrow was to close 5/29.  My realtor asked for an extension to 6/15 and F.M. sent us the doc.. I returned the signed doc and then F.M. Asset manager said they did not want to do the ext. and want to put the property back on the market and sell as is. I do not want to loose the property. What are my legal rights? Doesnt this make F.M. in breach of contract?  HELP?!
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May 27 2009 - Rio Vista
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