Need some opinions....? Should I throw in the towel...?

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...We are trying to close on a house;this has been going on a while(almost 4 m.)Just as we thought they were giving us the closing date,they come up with some new BS that the town won't let them close on the house unless they fix everything first.So they are getting the money from the other seller/buyer/whoever/ and putting it in the bank next week. Then what? MORE inspections? People coming to work on the house? How much longer will THAT take? Personally,I think it's a bunch of BS and I am ready to call it quits.My stupid hubby,though,still wants to keep waiting....But I am thinking about my kids.They go back to school at the end of next month and I am not doing this half-in-and hafl out BS anymore. And this loan officer is the seller's cousin,even SHE says he's full of chit. NOTE: The town is involved because the house has a LOT of violations...

Then he says, next week is THE week. Then I asked will we close then & he laughs at me.Something's rotten in Denmark.