Yes. Send the title company a termination of contract and request for Earnest Money. Since they have defaulted on the Third Party financing addendum, you are entitled to the Option & Earnest money.
Also, depending on your situation, They are technically “Cash Buyers” you can sue for Treble damages. (3x the Earnest Money & Court Cost.) Call me at 214.682.3655 if you have any questions. http://www.RussellThomae.com