You should be directing all of your questions to your buyer broker (I hope you have one and are not permitting the listing agent to be a dual agent)
If the seller doesn't agree to extend the diligence period then my advice is to terminate the offer immediately and get your earnest money returned. The date diligence ends is listed on the 2nd page of your Offer to Purchase and Contract near the bottom. Diligence expires at 5PM on the date listed.
Years ago, I had a buyer under contract and the day before closing, some neighborhood kids broke in the sliding glass door and sprayed black spray paint on every wall, all the carpet and the kitchen cabinets and appliances. This happened in a higher price neighborhood with a golf course. This home happened to be owned by a relocation company so the house was painted and new carpet installed within 2 days. My buyers were happy as they got to close on a home with new carpet and paint.
I hope everything works out for you on this house!
Is thsi affecting your loan at all or just the move in of the house? And find out why it is taking so long as well and see about moving it up
Coldwell Banker United