Well, things do change. Today, as I was mourning the end of escrow, our real estate agent called. It seems that the owner of the house met with the selling agent. He met with her to tell her about the problems with the house, and that we were going to have to withdraw our offer. Poor lady burst into tears. It seems that she really liked us, and wanted us as neighbors as much as we wanted the house. She offered to fix all of the major problems with the house! The gist of all this is that we are back in escrow. Yippee!