I'm so sorry to hear this, for all parties involved. I'm sure the sellers were trying to get it sold to make things easier in what was bound to be a very tough time for them. I also understand your disappointment, I would be in exactly the same place.
We purchased our 250 BWV contract and it had to go through a seemingly-infinite court process because the seller's wife, who was on the deed, lost the capacity to sign over the deed, so the husband had to get a power of attorney pushed through before the contract could be transferred to us. Nobody seemed to know what they were doing and the process took many, many months- I want to say close to eight by the time all was said and done. It was worth it to us because we were getting triple loaded points at like $80/pt or something (this was before prices started to climb) and we were prepared to wait ONLY because we would end up with like 750 points to burn, which we planned to use for Aulani and GCV the following year (and did so).
Long story short, in your position, I would start over. It would not be worth the wait to me personally for 50 points.