Need some foreclosure education

[Bob Basting]

Good day, everyone. I thought I'd introduce myself instead of simply lurking. I have found a ton of great information on the forums, so I think it's time to just jump right in.

I've recently located a house in my area that seems to be prime for a quick flip. It is currently in pre-foreclosure with an estimated foreclosure estimate of $356k. It's listed as a short-sale. It was last sold for $620k back in January 2007.

I'm confused as to the process for foreclosure. Do banks not have the authority to list a home through the MLS system at fair market value? I haven't been inside the home, but by all accounts there is nothing wrong with it.

Unfortunately, I do not have the capital to go after the house, but I even if that $356k is realistic and even if the market has gone down in the area, there is still significant money to be made on this property.

Thoughts from the experts here? What am I missing?