Need some help/info on pre-foreclosure

[Nate S.]

Alright there is this house that has been vacant for 2 yrs in my neigborhood. The house needs some additional repairs, and the loan on it is FHA. The problem is the person is asking for too much on the property.It's almost nearly on market value. It just started in process of being in foreclosure.All I know in pre-foreclosure is the process of doing short-sale or covering the debt.All I have is 5k, to cover closing cost,and the payments.I will take a loan out to repair the property. I think the only way I can make this a good deal is talk the price down,then short-sale it.I just need to know how I can make the pre-foreclosure.

I know there is profit potential in this property, it's just I don't know the process of getting it.here is some questions I would like to ask

-how do I talk to the bank to do short-sale?
-how do I do a loan reinstatement?
-can I use the FHA to my advantage?

I just need someone to to give me a general breif of a process on how to profit off pre-foreclosure.