Any joist end must be supported by at least 1-1/2" So building a secondary wall might help that issue.

If indeed the joist are overspan; you should consult a reliable contractor with engineering experience, or insist the contractor you do have consoles with a professional engineer. This isn't an issue you should take lightly.

over span is easy to check. floor joists should be sized to providge rigidity to the floors. This ends up making the floors much stronger than what is required to handle normal loads. and strong enough to resist sagging over time.

Do your floors feel springy? if you stand in the middle of the room and one of your chubby friends walk past, do you feel the floor move? If the floor is ridgid, and it's not sagging, then don't worry about overspan.
The 1/2" overhang must be fixed. Building out the wall is probably cheapest and easiest. I would put a 2x? flat along the top of the wall and 2x?'s vertical to support it. All nailed tight to the existing wall for stability. Could also be done by sistering a 5-6' long 2x8 to the existing joists.

14' does sound a little long for floor joists! My DIY book says 11'8" for 2 x 8 on 16" centers.

The term the inspector should have used is "full bearing".
Because of nailing requirements, 2-3/4" is considered full bearing.
Building a second wall beside the existing or installing a 2x3 treated sill, double top plate and 2x6 studs sistered to the existing is another solution which will automatically tie the support together.

Here is a link to span tables, use table #1 for standard residential floor joists;
http://www.southernpine.com/spantables.shtml

If the joists are a full 2 inches by 8 inches they are probably not overspanned.
Any modern span table is based on the reduced size of modern lumber.
A 2x8 is actually only 1.5 x 7.25 inches. If you have full dimension lumber it is about
1.33 times stronger by being 2 inches instead of 1.5 inches (goes directly with thickness), and about 1.34 times for being 8 inches vs. 7.25 (goes as the cube of height)
The inadequate bearing area is a separate issue. A ¼ or ½ inch bearing is way to low. You need to get up and carefully measure this, but adding sisters of modern 2x8 with adequate nailing can easily solve that problem.
A good PE with wood design experience can provide the nailing schedule and confirm the span. Framing a wall to provide support (unless you want one for other reasons) will just reduce floor space and transfer the load to the floor at a place that may not be suitable for bearing since it may not be over a footer.

If the joists are full 2x8's @ 16" o.c. the deflection at full design load should be .4" which is L/434 which is better than required by code (L/360). I would have preferred L/550 but I doubt that the floor will feel bouncy to most people. If it does that would be the only reason to strengthen it.