Pre-foreclosure negotiations with bank

[Joe Hughes]

I have been flipping auction and MLS-listed properties, and doing very well with that model.

I recently started a direct mail campaign to attract some motivated seller leads. The very first lead came in this morning and looks somewhat promising. The seller is way behind on her mortgage and has been notified by the bank that a foreclosure is coming on June 1st. She owes about $55K, is $8K in arrears and the house needs about $20K in rehab. ARV on the property is $109K. Slim profit with this scenario, but do-able.

My question is regarding the bank accepting an offer for less that the payoff amount.  Obviously, the foreclosure and auction process will be time consuming and expensive.  I'm confident the bank, and the seller, would like to avoid that with a cash offer from me.

Who should initiate the negotiations with the bank?  The seller, because she is the party on the mortgage, or myself ,as someone who has the skills to negotiate? 

Any advice would be greatly appreciated !