Sorry to hear about all the problems on your home loan especially with idiot Loan Officer who don't have the guts to communicate with their clients. Good, bad or ugly it is the responsibility of the LO to stay in direct communication with their borrowers.
Now, I can tell you this, I had a similar situation happen where during the escrow process a water pipe broke and the carpet was destroyed and of course the seller's property was NOT in the same condition as it was when the buyer offered on it. Since the lender most likely, has property condition requirements, unless the home is brought back to the same condition, you won't get funded.
But of course who do you look to? The seller most likely isn't going to dig into their pocket to cover those repairs cost, so if want to back out, there's a really easy way to do it. You just need a Buyer's Agent who is not coward and of course you need a LO who calls you back. Hopefully this will all work out, but if not, please find another LO to work with! This is certainly not the norm, but it appears that is getting more common that some LOs out there aren't conducting themselves in a professional manner.
Best of Luck!