Is the builder buying the land first or asking you to wait until they have a buyer? 

For context, I should probably mention that I have ~$100k in savings, 770 credit score and 95k salary.I appreciate your help!

As for the license, I was in the same boat and waited a few years and actually just recently got it.

That is not even to mention the other stuff that comes with membership.

Ultimately the borrower sold the property before sale so it was a non issue but had they not, and had we continued with default, if we did not restructure the foreclosure (difficult), we would have more than likely had to wait until sale, suffered a loss, then filed a title claim (Time...time...time...) to hopefully be made whole. 

Meanwhile, the rest of us are becoming millionaires while you wait on the sidelines.

But they never inform us of the increased premiums, even when they already sent us the quotation for a different price.And when they do not give me the answer clearly, they mentioned that I can terminate the policies if I do not like.

I didn't mention it, but it's definitely important to have the correct sheen, and to always use the same brand of paint.

The problem as mentioned above is that anything owner-occupied is going to come with a huge amount of regulations and legal compliance - its why most private lenders will not do loans like this even though they would do it in the same exact situation if the unit was a rental

Waiting for the approval from the bank is what takes a very long time.The home could be in good condition.