I could have sworn i saw mod that did this but after googling and searching the nexus i cant find one..does anyone know if a mod like this exists...if so could you link me to it?

Thanks in advance.

You got Stealth Rebalanced that includes that feature http://www.nexusmods.com/skyrim/mods/28418/?

Yeah that makes more changes than i want...i just think merchants,smiths,inn keepers shouldnt sell lock picks.

I just made a quick mod to do this in TES5Edit, but I can't test it myself (not got Skyrim or Wyre Bash fully set up on this PC yet).

If I send you the file could you test it out? Then I can upload it to the Nexus.

Edit: I just put it on http://www.dropbox.com/l/EqskOE6f3hRPhRR20wFnat, let me know if it works

I just downloaded it and im gonna install it and play and will reply.

I think the caravans should sell them and fences as well.

well heres my story:

I installed your mod,ran loot and made a bash patch..loaded my game(In falkreath)checked the merchant and smith and no lockpicks.....however i made a bad purchase and decided to reload my save and this time the merchant had lockpicks and the smith didnt...im gonna be playing off and on tonight and will keep posting back.

Ok i just went back into my game and this time in falkreath the merchant and the smith did not have lockpicks....stay tuned.