Absolutely get an attorney, go to the DA with a fraud charge as he didn't secure the note as he led you to believe, not just a civil suit but criminal as well.

We have to because of Fair Housing Rules (If you have a single unit that two different people applied to and received different results because of different application methods even though they have identical background checks, that is a fair housing violation).

Do I send another identical yellow letter?

I've read about short sale-related mortgage fraud and it seems like I wouldn't be able to list and buy. 

If the end buyer B-C is cash then it is perfectly legal.Are there possibilities of mortgage fraud with a"dry" double closing, where B wants to use C's funds for the A-B transaction?

There is just to much identity theft happening today.

When the Execution is sent to the Sheriff, you must include a copy of the deed that you are asking him to levy against and heaven forbid if the name on the deed and the name on your execution are not identical!

@Karl Krentzel  on another thread that was going around yesterday there is a bunch of fraud going on right now with bogus buyers and sellers trying to snake small dollars out of investors.And for that reason alone many Realtors chimed in that their brokerages now require verified prequals before they will show property or write offers.. this to keep agents from getting abused and others getting ripped off by this new wave of Nigerian sucker stuff.And again along with the reality at least in our market No prequel and your not going to buy much if anything..

However, facebook has way too much clutter, spam, and fraud so I really don't use it much for RE purposes. 

So...no...no one is jealous of a guy like that...just sorry that others got duped.Third, if you were selling the idea that you could turn lead into gold....you would definitely raise some eyebrows...maybe even get some folks to pay you for the privilege of listening to your program....but here's the difference (and, frankly, it's more than disconcerning that you don't get this) you sold them on the fact that they could turn LEAD into GOLD, not turn LEAD PAINTED GOLD....and that young man is the difference...they are not dupes...you sir are a criminal...it's called fraud....easy to figure in your scam...harder in the real estate game...but it's all the same.So when you sell your next property, and bill it as having "unique plumbing" (or whatever) and then justify the sale by fact that the buyer should have been more savvy....just remember that someone trusted you...and you screwed them over for a buck...because in your words they were "silly to give it to you".