Its embarrassing (and unprofessional) to approach someone about solving their foreclosure issue when none exists and these owners won't be very kind when responding to you.

Even if your realtor is right (and I agree with your numbers, but I am new to that analysis), I like the advice of "if you are not embarrassed by your offer, you are offering too much". 

Was he embarrassed, flippant, angry?

You are seriously embarrassing yourself.

Just kiddin'.Anyone going through foreclosure has several things going on: 1) They are under a lot of stress, 2) Everybody is mailing to them and knocking on their door, 3) They are embarrassed, 4) They feel helpless, 5) They have the belief that winning the lotto will bail them out at the last minute, 6) It's the bank's fault, 7) This can't be happening to them, 8) They don't want to sell, 9) The house (even though it has a leaky roof and hasn't been kept up) is worth more than market price, 10) Believe you are there to take advantage of them, 11) Believe the government should do more to protect them, 12) Believe that their payments reduce the principal directly proportionate to their payment (Have no concept of compound interest, what Einstein called "the 8th wonder of the world"). 13) They can file a Chapt 13 bankruptcy at the last minute and keep the house if they have income, 14) They will wait until the day before the sale and call you if none of the other solutions work.Your opening comment should be " I buy houses in the area and I was wondering if you or someone you know might be interested in selling".

., and @Jay Hinrichs I feel embarrassed.

True erentpayment does NOT deserve my business and they were truly horrible...they even got rid of being able to talk to a person on the phone during the debacle...I am embarrassed to say that I still use it. 

In situations like this, people are sometimes embarrassed to admit their situation so in my experience I've found it's better to let them tell you about it than the other way around.  

SO Im super embarrassed to even be here posting but I really need the help and advice.  

She told me not to embarrass her and "that kind of offer will make the seller mad at you".