Continuity mistake: The position of the femur in Ray's dog's mouth is different in subsequent shots. (00:49:00)
The Klopeks didn't kill Walter... they killed the former owners of the house they're living in: The Napps; that explains all those bones in the trunk of the Klopeks' car. Werner Klopek tries to kill Ray (as he's being driven away in an ambulance) but is unsuccessful. The Klopeks are arrested. Art's wife returns. Ray goes home with his wife and it's time to relax and enjoy his vacation.
Trivia: According to Courtney Gains, who plays Hans, he, Henry Gibson and Brother Theodore weren't told if their characters were guilty or not. Also, along with the alternate ending, there were several versions of 'the reveal' in the trunk of the Klopeks' car; including a version where the victims were cheer leaders and one with the garbage men. Ultimately, it became a collection of bones. Source: "There goes the neighborhood" blu-ray special features.
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