.Seems Pace Morby is doing this with people in foreclosure for "foreclosure avoidance" in AZ, TX, GA, NC, FL, CA and other places according to him. and says it is very profitable.

You aren't required to offer a loan mod prior to foreclosure.

IMO if I had to sell - I would contract for deed so I retiain title until the debt is paid off or at minimum a wraparound note on my existing debt and have the investor personally guarantee this coupled with a deed in lieu of foreclosure (now the investor has skin in the game if they default). 

The auctions, although online now, are live foreclosure auctions, i.e. the auction style sale which is the culmination of the foreclosure process. 

Their credit is shot and they are getting foreclosure notices.

I would like to find a mentor/agent who has experience with Foreclosures (HUD) who would be willing to answer questions and work together in the Phoenix/Scottsdale area.I'm on a new journey in life and finally taking steps in the Investor direction... something I should have done a long time ago.

Seems like everyone wants to wholesale here - The competition is really high - I dont really wholesale unless it makes sense for everyone but my advice would be to try and hit the lists that arent already super flooded ( pre foreclosure, vacant, etc.) 

I would check the redemption laws on foreclosures.

It could be possible to still negotiate a purchase depending on the stage of foreclosure it is in. 

They have no Deed, so there is no foreclosure, just eviction for breach of contract and non-payment of dues.