You could walk and loose $1000 but compared to your worries could be the best solution for you.

This I found to be helpful
http://real-estate.lawyers.com/Home-Purchase-Agreements.html

First - I agree that you need to talk with your attorney about pulling out of the deal. I educate my clients by telling them that there are basically 2 contingencies to get out of a deal: If the home inspection doesn't go to their liking they can review the home inspection report and have 2 days to say they want to move forward, pull out, or ask for money back to fix something or have the owners fix something, and you'll get your deposit back if you choose to pull out of the deal; the other thing is if you can't get financed by your bank or mortgage lender. I would recommend if you are able to pull out of this deal and find another home, you may want to work with a realtor who is representing you as a Buyer's Agent because he/she would have talked with you about your options once looking at the home further. The listing agent works mainly for the seller, and will represent you as well, but can't give you as much of the fiduciary responsibilities as if working with you alone, and it doesn't cost you anything more to have a realtor on your side. I hope all gets better with your health - with the right guidance, buying a home should not be a stressful endeavor! ;o) Take care and good luck!

I suggest you talk with a legal representative and have them review your contract.

It sounds like you really would benefit from consulting a real estate attorney to protect yourselves. Buyer's remorse is not unusual, and this may be what you are feeling. However, if you have serious concerns that are affecting your health, see an attorney for the best and accurate guidance. This forum is not the place to find out what to do. We are not attorneys and cannot practice law. Best wishes for good health and a happy home!