Can't find answer to the most fundemental question-help

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I have read 6 preforeclosure real estate books, but some of the most important macro questions don't seem to be addressed in them.

Investors are ultimately looking for a deal that has equity and you can flip with at least a 20%+ profit margin (unless you are doing a short sale).

Question #1: If that's the situation, why wouldn't the home owner just sell their house and do the same thing?

The home owner may not have the money for payments, and poor credit preventing them from tapping into the last 20% of equity, but they could still sell their house. The only reason I can see is if they waited too long and don't have time to sell before the auction.

Their are a few unique situations: 1. not educated to know that, 2. Denial 3. Divorce--even if it's in their best interest, they would rather make their ex-suffer by destroying eachother, 4. death, no one to do it. 5. simply waited too long before choosing to sell. These must be a small portion of the foreclosures.

Question #2: Is the only thing we are banking on is their ignorance?

Most of the seansoned people are saying you should approach the preforeclsoure with the intention of helping the people and building a relationship.

Question #3: Do you really tell them what there legitimate options are? If it has good equity, they will sell it on their own and you lose the deal. If it has poor equity, you don't want it anyways (unless doing a short sale).

Qustion #4: There are special circumstances (such as short sales and rehabbing) that give an investor a comparative advantage over the the home owner and are where the investor adds value. Barring those 2 situations, what is the value-added that we as investors can bring that he homeowner can't?

Qustion #5: It seems that marketing to owners late in their foreclosures would be best since they don't have time to sell. Is this correct?

Question #6: Is the answer to all of the above -- the deals that are apealing (the ones with equity or that you could make money on) are the ones where the owner waited too long to sell, they are uneducated, or simply don't care. Or they have little equity but are good short sale candidates? Does that sum it up?
Thanks!