Is my debt free desire getting in the way of buying a home?

Need some perspective here. We just found out yesterday that there is likely a material defect in the title, which has to be cured. If it’s not cured now, by the current seller, it will have to be cured later, by us.

It’s material enough that it would allow us to back out of the deal.

Which would allow us to either (a) move to Texas and rent til we have enough to pay cash for a house (which would happen WAY sooner there than here in CA) or (b) pay cash for some land, buy an RV and live in it (and off grid) and build as we have the funds to do so.

Now personally, I would choose option B, but as you know, I have a DD18 whose anxiety level would probably go right through the roof in that environment, so I’d probably have to figure out something more rapid in a build it scenario.

Regardless, my real question is: am I using the very real problem with the Title as an excuse to get out of the deal (which is so cheap/affordable it’s embarrassing) “just because” the idea of going from near zero debt to $65k is freaking me out ??????

And if I am, how do I fix that?