Sarah Tanner I don't have any advice about what you could do in this situation but I did want to acknowledge that you are feeling pain relating to it.

just make sure they sign something that acknowledges that if they change their mind, you keep the holding deposit.

If it comes to it use the broken record technique, just acknowledge and repeat what you are saying about the rent being due.  

I thought about drafting a release for him to sign, acknowledging the sale and that he's taken everything he wants from the house.

The city said there was nothing they could do about the drainage, though the mayor, our council lady and the storm sewer guy all acknowledge we have drainage issues.

He acknowledged that the house needed to be upgraded (it had all original kitchen, bath & windows from the 50's), so he was looking for $215k to $230k.

Anyone have any luck with lenders acknowledging the property flips as income even though they are not reported on a schedule c on the tax return?

Maybe you've never applied for a mortgage or closed on a home before, but you essentially sign a mountain of paperwork saying "I promise to pay back this loan at $XXX per month for XX years" (the document is literally called a promissory note), "and if I don't pay as agreed I acknowledge the bank can foreclose and take the house back".Signing those documents without the intention to actually pay is, quite literally, "lying to the bank"...in writing and "under oath" no less (since these documents are typically notarized). 

I'm learning too, so once you complete a deal using creative financing, please come back to this post and acknowledge what was done to teach us newbies :)

One of them is the seller acknowledging that if you don’t make the payments she is screwed because you have the title, the loan is still in her name and there is nothing she can do about it, among others.