No one has ever steered me toward inferior loan products or tried to force me to buy in only certain areas. 

If his work is "inferior" I would think you would be spending good money after bad.

I recently read that in Portugal it's commonplace for people not to be able to flush TP down the toilet as their sewer infrastructure is inferior - they have to discard TP in bins. 

Your whole argument is based on substandard housing being inferior to no housing, yet you only provide evidence supporting your position.

The Truth is that a 15 year mortgage is riskier than a 30 year mortgage because it will give you an inferior current ratio and inferior cash flow from operations.

Far and away the best garbage disposals for the average residence are the InSinkErators or similar disposals with an override protection switch on the bottom and a socket on the bottom that accepts their own bottom-up (inferior) disposal wrench.4.

A new party is now present who has claim, even if inferior, to the real property and is not bound by the contract agreed to by the original Borrower and Mortgagee.

As you say there are few comps available, they will expand their search criteria back in time (possibly using sales from many years prior) and estimating a market trend adjustment (adjusting up for an appreciating market and vice-versa for a depreciating market, etc), they will go to other nearby neighborhoods (even if they are many many miles away) and find recent sales, adjusting for location (Superior/Inferior neighborhood - if warranted). 

It gets challenging when one person provides all of the work finding, funding and selling the property and one person doing the rehab.You have to decide in advance, in writing, in the JV Agreement how to handle inferior workmanship, if a sub contractor is called in who pays for that, who pays for supplies, who pays for overages, who pays for “redo’s” and who pays for missed deadlines.

The vast majority of insurance people out there do not understand this because the majority of them are not active investors themselves and because of this, provide incorrect information and either inferior products and in many cases, based on my experience, the absolutely incorrect product altogether.