I have a motivated seller who cannot afford to pay her mortgage anymore and will let it go into foreclosure if nothing is done.The property has $730,000 in loans They Owe $440k / 39% equity The average sold in the neighborhood is $659k Never had a seller like this and new to real estate investing.

Both are FSBO's  and one owes a small loan amount and the other is free and clear.

They did not owe a dime.

I went to do a search for county records and it doesn't show that she owed any money or have any liens on the house.  

Most companies insure for rebuild cost but some will insure against how much is owed on the property. 

Leverage whatever skills you have to open a few doors, take some electives to help you avoid basic pitfalls of start-ups (yes, start-up principals can be applied to real estate investors), and network as much as you possibly can.  

It's worth it.One thing to think about, even if you put very little down, often, you will have to show 6 months reserve principal, interest, tax & insurance (PITI) payments for each of your properties.

Here is a legal pad conversation with a home seller, say -seller has comps at $100K-Owes $95KRents for $1000Costs to sell are $10K to $12K-Sub2, wrap or lease option assignment possibility presentationSee video here http://www.screencast.com/users/REISkills/folders/...No links, no ads.

When asking them what they think their house is worth and how much repairs it requires and how little they would accept, and how much they owe, what are some good rules of thumb to determine if they qualify for a face to face meeting? 

Also, if it is very large, why aren't you buying the property and doing it all yourself as principal?