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You are the homeowner. No Realtor can make YOU the homeowner sign anything you don't want to sign.
The fact is that YOU have signed a legally binding contract with full knowledge of your actions.You can seek to do a short sale with your banker, but depending on your finances, they may say "no". But they may also say "yes" and be willing to take the loss of $40,000 themselves.Otherwise, you do need to contact an attorney. The buyers may be willing to walk away under certain circumstances, but you could be sued for specific performance of the contract as it is legally binding.
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For Sale: $799,000
For Sale: $549,617
For Sale: $489,900