That's a zero loss if the buyer balks.

Most of them offer the FHA program.

Once it's an REO, there no longer is a mortgagor or mortgagee, there no longer is a mortgage...it's now called "selling at a loss", which I agree is "short" of what they wanted....but, enough of the semantics.

Is the "Special circumstance" letter the letter documenting a large loss in income that led to the short sale to cut the wait time down to 2 years for fannie/freddie loans?  

We're not paying property tax on it since it's not a permanent structure.Related question - Our sole proprietorship is a farm, so we use Schedule F (Profit or Loss from Farming).  

Tell them you will sell to them, but they have to commit to submitting an offer with a non refundable deposit of say $5000 and commitment to buy within 15 days. this will tell you if they are serious and not wasting your time, and if they can't commit you have something for the loss of time for not listing the house and just pushes your listing back to the end of the month and enough time to get their house ready.

Some of the more established RE investors here offer services, programs, etc.

She said from time to time "many income properties in LA are priced at a loss." 

If it means you understand concepts but forget to carry the one when you're adding by hand, no problem - use a calculator or a computer program.

Look into FHA and NACA programs for low downpayent and financing assistance.