New REI: ACD Possible Pre-foreclosure

[Brianna Alhaliq]

Hi,

I am new in REI and am focused on learning as much as i can right now. I've heard that a neighbor is in ACD, which i believe is an indication of foreclosure w/in a FHA loan. What should I do? Do I approach the homeowners and suggest a Subject To or out Short Sale? Would I focus on letting them rent the home, or re-sell?

From what i know about our neighborhood, they should have good equity in their home now to make this transaction profitable. 

Thanks,

Brianna