arrrgh! It's touchin' me balls!

We just had a giant fuck-up with our house. There is this crazy Inspection Co. called Knox who screwed both us and Jen's Parents over the last few weeks.
They aren't licensed, and they are running a sale right now, so a bunch of people are using them. The In-laws had them out to their house a few weeks ago, and they wrote this scathing report that made it seem as though the house was about to fall over, and they lost the deal because of that. Just our luck, we get the same company and the same inspector. He wrote an equally scathing report on our house. Stupid shit that makes no difference. Our house passed FHA two years ago, and all we have done nothing but make improvements and remodel since then, and now it doesn't pass. WTF? FHA is the most strict loan you can get. He put things in there like: Evidence of wallpaper and wood paneling, which is gennerally used to cover structural defects. huh? I have no wall paper or paneling. The brand new water heater i had professionally installed a month ago was "sub-standard" and our breaker box was not 10 feet above the ground, and therefore a fire hazard. TEN FEET? That list just went on and on like that. I guess all 60 year old houses are supposed to be up to current standards.
So the buyer backed out.
The loan on our new house in Stillwater, (awesome) was contigent on our other house being sold, so we're probably gonna lose that deal too.