I have a business relationship with my tenants, not a personal one.

So, you shouldn't be fighting with an agent at all, only their broker (and you probably shouldn't be fighting with the broker either).Second, you only pay a commission if the deal is closed (there are some edge cases where you'd technically owe a commission on a deal that's not consummated, but those would involve you not living up to an executed agreement, which you never had with the buyer the first time around).Third, if an agent/broker has an issue with a buyer breaching an agency relationship, that is between the broker and the buyer, not the seller.

Buyer is pre-approved for well over 140K from the bank because he has excellent credit, good income, with 6+ months reserves, <45 DTI, but does not have the 28K to get the deal done.Is there a creative way for me to sell this thing to my buyer with him not having to come to the table with the 20%?

Low balling the offer was an excellent way to go!

That is a "crushing it" deal you landed.With section 8 paying you will ride the government gravy train.Paul you haven't said if you will be buying all cash.I don't like the fact the house is from 1973.You have to worry about lead based paint and the EPA instead of being built in the later years.You have to worry they just put lipstick on it.Remember many of these companies do not care about you they just want the check.A connection should be formed with someone local to the area wanting to form a relationship with you that will last generations and help you get into good deals where you will not be into trouble down the road.I can tell you just 3 to 4 years ago getting houses for these prices was unheard of.It will not last forever.

Thanks Rich for your excellent comments.

My current position with the Federal Government in Afghanistan won't allow me to do a strategic bankruptcy as they monitor my creditworthiness in relationship to the security clearance I hold.

McKellar Newsom If the person is Canadian here are some banks:Harris bank (bank of montreal) will deal with loans 50% of purchase price but they will want to have a relationship with the buyer firstRBC Centura (RBC canada) not as picky to having a pre-existing relationship with clients and will do up to 70% of loan to valueWashington Federal- minimum investment $50,000 to $700,000 up to %65 of Loan to ValueTD Canada trust-not sure the details but I know some investors have used them.

These can be relaxed some if you have excellent credit.

The reviews are excellent, and I've never had any issues with the 2 or 3 I've installed in my houses.