Hi Kasi - there are certainly some red flags here as to the legitimacy of the buyer(s). 

There were red flags from the beginning. 

We currently own an STR in Red Lodge Mt.

hello-q: i hope that you have quite the plethora in information about the decide to..build a square space (office like in function) right next to house-to have "reason space" to work from home ('i am forced to work from home bcs of having parent who survives a stroke-cared for on/in house property, bcs putting her instead in assisted living-wouldn't be more affordable/feasable, and many states (california being one) are willing to help loved one(s) to age/stay in place as reason to build these extra spaces in/on property..putting her in the situation as more benefitting i am researching the state orgs to find out what to do=being as stellar the careful/accurate as i can with gathering as to what to do..including the obtain of funding per any grants.and trusting that having your consultation has us getting away from issue/noise over just purchasing/happenstance model in default assisted: residential (multi bed home stead-with all the red tape & fees/tax justify better?

In contract to purchase a CFD in MO. Have done most due diligence items, but I'm stuck on two pieces that I'm not sure about.1. The seller doesn't have the borrower's driver license or any identity verification paperw...

Probably not, because in some states would change the tax status of the property to Secondary which could be a red flag for USDA especially if they are the ones you are making the payments to, which is the case with USDA Direct loans. 

And if they see a huge red flag, then you'll feel ok about ditching the deal.And don't do this again, waiving contingincies is for pros.

I agree on all the points you’ve shared and definitely use them for my research.One question I wondered about was if people care about political affiliations (red/blue area).

Not so sure about this area, but generally it's good to invest at red states, most of their market experience good growth and are landlord friendly.

Is this a major red flag of her professionalism?