help

What is the name of your state? Mississippi

I put a contract on a new house through the builder. After getting my father and insurance agent out to look at the house, I decided I wanted out due to the slopes in the back yard and worried about the flooded through the back. I let the builder know this and they would not put in a french drain so I told him that I would forfiet the 500 earnest money and he could put the house back on the market. Well he was fine with that up until the bank asked him to send them a release and let it slip that I had a second contract contingent to being released from the 1st one. Now the builder is mad, says that there is nothing wrong with the back yard and will not sign a release so I can go on with the other house. I told him that I could not afford flood insurance and I am a single mother of 2 and could not have that worry on my mind. The house was not in a flood zone but when it rains the water goes straight for the boor door. Even the insurance agent said he would get flood insurance if he were me. Anyway I faxed him a letter stating that I forfeited the 500 and asked for him to sign and I have had no reply. SHould I be concerned or should I go on with the 2nd contract??? Should the bank have given out any of my personal info??