Pre-foreclosure; how to approach owners

[Anna Weitnauer]

I am new to all of this. I have cash (around $100k) which would cover what payments remain on the house (only $25k remaining) that is in pre-foreclosure. It was bought for $165k in 1997 and now Notice of Default has been issued. How does this work? Do the homeowners give up the house for the amount for what is unpaid? That seems unreal. Or you offer ...? I don't know where to begin on this conversation. I plan to go "knock on the door" but not sure where to take it from there. Would a short sale mean that the bank gets its $25k back? What am I missing? Thanks for the help in navigating this. I'm ready to read up --- just don't know even where to start.