This little boy sounds like he has some significant problems. He needs a loving home. If you have the resources to care for him, I hope you will, but if not you should place him.
A Yorkie may not be for you if you are frustrated by submissive behavior. He will never be a Rottweiler. I agree with Olivier that he will gain confidence with some time.
I hope you will invest in having his physical problems assessed.
Good luck,
CJ |