want to get out of escrow (as a seller)

[Sara Underwood]

My family has a townhome that we are selling and it currently is in its 13th day of escrow. There is a lawsuit against the HOA which started a month ago and we didn't know about it when we listed the house 2 weeks ago.
On another note, we have a family reason that we now want to back out of the escrow. We are thinking to send the buyer a form 14C3, a notice to buyer to perform (to remove loan contingency).
Knowing that the buyer probably would not be able to find out about their loan approval this soon (due to this lawsuit), what are the consequence that can happen to us after sending the notice to the buyer? What can we do to get out of the escrow?
Your comment is much appreciated. Thank you.