Your FD inspects residential properties? Man I'm glad I've always lived up here. Our first house the Lender had some issues, mainly that I had to finish off one of the 2 unfinished bathrooms, and put down some floors before closing. Seller was fine, it was an estate. Well a week into the job some dude showing up and starting hollering at us. Turns out it was the brother of the previous owner who thought we weren't paying enough. He was from MA and figured 7 acres and a half finished house must be worth at least half a mil.Welcome to my life.
This is what I do all day. Not all go sideways like this though. Some fly right through, some are nail biters until the bitter end, there are just too many variables.
No toilets and dropped ceiling in the garage would be a problem with any lender and even if the lender didn't catch the dropped ceiling, the fire department would when they do the smoke detector inspection.
Spent a few months in court. Funniest thing was my grandfather was my lawyer and it turns out the guy hired my grandfather's college roommate to sue us. Needless to say it was completely dropped.
I've seen some real short sale disasters as of late. Had one client go through about 4 months of mortgage negation to find out the guy's ex wife had taken out a 2nd mortgage that showed up the morning before closing.