Helping someone in pre foreclosure save their credit?

[Sal Souza]

Hi All,

I've been learning about pre foreclosure leads as possible deal sources.  People who teach this subject are always referring to how you're helping people by purchasing their home and saving them from foreclosure thus saving their credit.  There is a property in foreclosure in my town that I'm interested in, but I'm confused about a couple things:

1) How do you answer the objection from the seller who says their credit is already ruined because of missing so many mortgage payments? 

2) If the seller has a lot of equity, I would structure my offer so that the seller receives some of that as cash for moving/relocating expenses, etc. But doesn't the lender have to do that as well once the property becomes an REO and is sold?

Thanks!

Sal