Just insure it is installed correctly

Perhaps, this is something insurance would cover? 

Involve your insurance company immediately.   

For subject-to transactions, the POA won't get around the "due on sale" clause, but it will help you do very important things like cash escrow refund checks and insurance claim checks, and other borrower-centric activities.

This year one can not claim the insurance as tax deduction.

Also, insurance agents, attorneys, lenders?

Earnest money is there to ensure you have skin in the game which insures you'll be closing on the property. $1 shows you have no interest in closing the deal.

Prop tax, insurance, and MI are per loan officer and confirmed by my own research.

If not try to get an injunction to stop construction from a judge, up your flood insurance, there are a few different ways to deal with the situation or the blow back in this case.To me is sounds like the builder made a error in his engineering plans, and he knows it.

I like the Fannie Mae just a little better because the mortgage insurance is cancellable where as the mortgage insurance on the FHA loan is not.