Financing issues: A common reason for a transaction to fall out of escrow is due to problems with the buyer's financing. This may include issues with the buyer's credit score, debt-to-income ratio, or inability to secure a loan.

Home inspection issues: Another common reason for a transaction to fall out of escrow is due to issues discovered during the home inspection. These issues may include problems with the home's foundation, electrical system, plumbing, or roof.

Appraisal issues: If the home appraisal comes in lower than the agreed-upon sale price, the buyer may be unable or unwilling to cover the difference in price, leading to a canceled transaction.

Title issues: Issues with the title of the property, such as liens or disputes over ownership, can also lead to a canceled transaction.

Contingencies not being met: Real estate transactions often include contingencies, such as the sale of the buyer's current home, that must be met before the transaction can proceed. If these contingencies are not met, the transaction may be canceled.

Buyer or seller backing out: Finally, either the buyer or the seller may back out of the transaction for personal or financial reasons, leading to a canceled escrow.