Buyer Breach of Contract HELP PLEASE

Can someone PLEASE tell me if we can be sued for breaking a purchase contract?

The facts:
1. We entered into a contract for a delayed close one year out. Agreement states seller can keep the good faith deposit and sue for performance deposit if we breach.

2. We thought we could have our financing together by now but still can't get approved for the mortgage.

3. Market has completely tanked and we would be entering the house in a negative position.

4. Real Estate agent (who is also famly member of owner and transactional broker for both parties) did not disclose the cause for mold in the home. She forgot the details that the home had been vandalized while being built and caused immense damage to both sides of the home. We were told the mother overflowed the bathtub. She also didn't share that the original buyer backed out of the purchase contract.

5. We informed them we are moving out within next 15 days. They responded stating they are going to sue us for fraud.

Is this possible? What should we do?

Thanks!

[judg4]

They cannot really sue for fraud--you forfeit your deposits etc. but they cannot get too much more.

I was approved for a home refinance and I signed and closed the loan two weeks ago but the lender did not dispense the money to the title company.

Now its two weeks into closing and I will be getting my funds in the next couple of days.

Now all my payoffs have been altered and I am concerned about my first payment since the lender delayed.

What is my legal position on this?