I have strong southern roots in Alabama, North Carolina & Virginia.

Does that really take care of the mold that attached to the flooring (due to the moisture issue after the mold crept up all the walls it flung itself onto every single thing in that house lol including the floors), or is it like mold on bread where the mold has roots and is all over inside even when the surface is sanded off?

If the NOD has been filed and the property is going through it's listing phase in the local paper leading up the the auction date are there any impediments that would prevent it from being a viable (assignable) deal?

Anyway, I don't have short sale experience but I can't see why a seller could prevent you from doing whatever you feel like doing with a property once you own it. 

No piece of paper can prevent hurt feelings if the situation turns bad.

that would also prevent anyone from stealing the a/c unit.

But the problem was solved and I was able to move on with my plans for the property.See what the true root of the problem is and see if you can help fix it.

If I serve a 3 day notice to quit or cure how do I prevent Cozy from accepting partial payments?

You ought to be able to prevent most of what you're worried about through screening and regular, open communication with tenants.

Have any of you experienced this and know of an effective way to prevent the additional waste?