Foreclosure reviews and complaints

5 months ago I signed a contract with Fannie Mae for a foreclosure apartment in Manhattan, NY. I got my mortgage with Sovereign bank and everything is totally fine on my side… but I am still waiting for a closing date from Fannie Mae since more than two months. I am on my 5th Contract extension.
First issue: FM realized after 3 months that they were missing two important papers: The Share Certificate and the Proprietary Lease. They forced us to sign an extension to give them the time to get duplicates.
But after this issue was resolved they still needed to get clearance to pay the flip tax they owe to the building. Everyday my lawyer gets the same answer: We didn't get the clearance… after 5 months!
Because of waiting for so long for the clearance I not only expired my 60 days lock rate but I expired also my free 30 days extension my bank kindly gave me.
My lawyer spoke to the FM’s lawyer this morning and basically the end results were:

1. My client is the US government.
2. We do whatever we want.
3. If you do not like the fact that we did not investigate what our obligations are until the Purchaser had her financing lined up then tough luck

Still no closing date because FM didn’t “clear” what they do owe to the building.

As of Monday, I will be paying 68 dollars per day as penalties to the bank (I am over 90 days lock rate) to keep my interest rates going.
I need advice. What should I do as I love the apt and spend already more than 2500 dollars in the process?
It is a contractual obligation for them to sell me the apt as we signed the contract. The "REAL ESTATE PURCHASE ADDENDUM" to the Contract of Sale states:

" 2. Time is of the Essence Settlement Date

(a) It is agreed that time is of the essence with respect to all dates specified in the Agreement. This means that all deadlines are intended to be strict and absolute."

Please help me… I am desperate. Thanks.

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