Preforeclosure - Next Steps!?

[Tanya Rooney]

Hello BP'ers!

I found a house that I am very interested in buying for the right price. We just found out its in preforeclosure. I have never ventured down this path and have only done a small amount of research on it. It sounds like my only option at this stage is to reach out to the homeowner direct with a phone call, drop in or letter(s) to see if we can strike a deal and get them out of their mortgage. Can anyone provide some feedback on how this goes? I am not completely on the up and up on what the conversation is except that I want to buy that house for what they owe or a little more. Do I tell them its just like a typical home sale and it gets them out of their mortgage quickly? If they are 8 months behind on payments, do I pay that up and then the balance of their loan?

If there is a book a should be buying to teach me about it, feel free to suggest. I searched the forums a bit and found writing a letter seems to be the most common. Any suggestions or advice is welcome! Thank you!!