Cancel sale if home is headed for foreclosure?

REThink Real Estate

Q. Our closing day is next week for a resale home. But today, my closing attorney informed us that two days after our closing day, the house is going into foreclosure. The seller has hidden from us (and from his own agent) the fact that the payments on the home are more than six months past due!

Can I terminate the contract because the seller has lied? We don’t want to get into a big mess with the bank — that’s why we didn’t want to buy a short sale or a foreclosure home in the first place. Is it too late to terminate? –Shania