This has resulted in a push to keep a small town feel and ultimately prevent overall growth in the city. 

Seller puts mortgage in the back of their mind and they prevent a foreclosure from going on their credit report.After seller agrees: You market deal Owner Finance/Assume the loan for $15k down for $65k purchase price. ($5k to catch up loan, $10k for your profit).Finally: Once you have both agreements, take the deal to the title company and explain to your closer what your doing.

Seems like that may be the root of your problem!

Not only is he real estate attorney with deep roots here in the city but he is also an investor with over 10 plus rental properties himself.

Perhaps some constructive feedback might help prevent them from being that which you loathe so much.

The tenant originally had someone on the lease that was going to rent out the basement but when it got flooded his tenant left and asked us to reduce the rent by a 1/3 for the rest of the year b/c he lost his tenant  vs. fix the basement problem but we decided to fix the basement problem b/c we are in it for the long run.We want to be fair to the tenant and keep him comfortable but to prevent from being taken advantage of.

,crazy bet:-eastern european-former miner-former military roots (military green helmet in one picture)-loved mountains (all the crazy shaped wood inside/outside the house)-copper....

So i'd give it back and be glad I avoided a flakey potential tenant or larger problem...And maybe look at the details and timing of your signings to prevent this in the future.

Question... what prevents someone from breaking contract and selling to a better offer if they have not much to lose.  

This prevents multiple submission for a particular risk with conflicting information.