Buying A House in Pre-Foreclosure

[Kendall Bryant]

Hey Guys and Gals!

This is my first post on BP after watching so many videos. I've heard about how helpful the forums are and wanted to try posting my situation on here for some tips and guidance.

I'm just starting my investing journey and my friend informed me of a house in my area that is about to go to Foreclosure. 

As an investor, what are my options in which I could possible acquire the home before it goes to auction. My friend does not know the owner personally, but has a friend that does. It might be possible for me to talk with the owner 1 on 1 and put in an offer before the auction.

My issue is that I don't have much capital myself to make a decent offer on a house myself. I also am not sure what the owner owes that would be the opening bid. My first thought would be seller financing, but I'm not sure if that would delay the foreclosure process. Also the owner still lives in the residence, so its unlikely he wants to leave (my assumption). I've heard of a deal where maybe I buy the house from the owner and then the owner then becomes a tenant.

I've watched so many BP and Real Estate Rookie videos, all the information is swirling in my head and I just don't want to miss out on a good deal.