Pre-foreclosure under contract with road blocks.

[Brandie Lyons]

I have a home under contract that's in pre-foreclosure with no equity and the seller is upside down. I see two options for the homeowner, Short Sale or Owner Financing. Since this is my first contract I want to know the best way to handle this while also helping the owner walk away with something to help her and her children move. I've had investors contact me as if they were intrested, but then ask for an auction date. The home owner rather sell and move than refinance. Any guidance in this matter is greatly appreciated.