Then you will be the evil thief who stole their house.2) Are they wanting to do some sort of repurchase agreement?

Would installing an alarm system help with the insurance cost being that the property is vacant, or should I just avoid that expense?  

He said "Sure, there is a database by my company and I will ask others in my office if they know any" which immediately set off alarm bells because I'd assumed he'd have personal experience with some.

I guess I normally would not even look at a short sale but because of the alarming number on mortgage disasters right now, I have no doubt that lenders are overwhelmed.

A third attempt was thwarted when an alarm system my insurance company had me install convinced the crooks to go elsewhere.

Get an alarm system and/or night watchman after you get your plumbing in, etc.).Half the battle is just pulling the trigger - as scary as that is (and it's a very scary thing that all RE investors have to face when they start). 

I know about necessary egresses and about quick release mechanisms for window bars and about alarms vs. window bars... 

Just make sure you do a comprehensive screening of them and as long as nothing alarming shows up, I'd say you could go for it.  

I have considered that, i just figured this would certainly alarm the lender and yield a greater chance of them calling the loan due. any thoughts?

Those prices are causing investors to buy in bulk at an alarming rate so get it while its hot.Kudos,Mary