I know it isn't much but I am confident I can use that 20K as a down payment on a house that I would like to make my first rental property (buy and hold). 

I was just wondering if there were any confidentiality issues. 

He called the current owner and came back with a confidentiality and non-circumvention agreement for me to sign.  

You could use a confidentiality agreement with the investor so they can't go behind your back, but that's probably the least of your worries right now.

Let me know....we can chat confidentially if that is better for you.  

After chatting with him, and knowing fully what their personal situation is and the reason for selling, I am confident I could chip that down significantly.

Calling the bank is not going to get you very far since they are bound by confidentiality guidelines and will not take favorably to some Joe questioning their ability to pre-approve a candidate.

What has helped me to this point feel more confident is... networking- starting to meet people in the industry like other flippers, investors, realtors, contractors, etc...

The lender will not provide you with any information since the buyer's loan, details of their loan application, outstanding conditions, etc is all confidential information, and not even shared with their own agent.

Reports are kept confidential so the workers will not tell them whom reported it.I would also telephone the police and the homeowners association.