Need Help Analyzing Pre-Foreclosure deal

[Don Corson]

Newbie possibly looking to do first pre-foreclosure deal -- would like some feedback. I've been reading the forum, and reading up on the subject for the past many months, so I know enough to be *dangerous*...
Here are the details. Friend of my wife's, in early stages of foreclosure. Owes about $101k, 7 months behind on payments (which would equal about $6500). House would retail for $140k, and needs about $7k-10k in work to get it there. With that amount of equity, would Countrywide accept less than the balance owed, considering this person cannot make the payments, and wants to walk away from the house?
If so, what would be a rough idea of what they might take? I know I would have to paint a bleak picture of the circumstances for them...
I want to do right by my wife's friend, and hopefully be able to put some $ in her pocket. Foreclosure sale has not been set on sheriff's record, but she said it is in June...

Thanks in advance for some knowledgable feedback!

Don