My issue has been with the Wholesales who target underwater mortgage holders.

That could not be further from teh truth, what this person is mixing up is the difference between a house flipper investor and a investor who is a buy and holder (landlord).

If I understand a short sale correctly, the lien holder agrees to release their lien (all rights to the property) for less than what they are owed....is that right?

She was in a seller finance deal and the note holder wouldn't allow her to get current...he wanted out of the landlord role and wasn't very negotiable on selling the deal.  

It would probably be a separate agreement between the agent and the holder of the right to assign.  

You may be able to pick up turn key properties that you can buy under market such as a foreclosure that has been discounted by the mortgage holder or even a house you can buy that is in good shape for a seller that for whatever reason has gotten themselves in a tight financial situation and need to sell with a sense of urgency but that supply is low. 

If there are two lien holders, it may take more time.Be patient.

LOL You can check the archives for my comments on the DOS and you'll also find that more often than not I actually contacted the note holder/lender prior to a sub-2 and more often than not received the wink and nod approval to do the deal.

These are from the MLS rules.The key is that the MLS is not saying that the Deed Holder must authorize the listing.

Then you are in a better position to negotiate a price that makes sense for the flip.As a buy and holder, you want to know vacancy factors, cap rates, loan rates, etc.