Buying a home in pre-foreclosure

[Melissa G.]

I'm trying to negotiate with an owner to buy his home that is in pre-forclosure. In your experience, how many owners are willing to make this kind of deal?

I don't know yet how much he owes on the home. I'm hoping it will be in my price range. If not, I'll ask if he'd work with me on a short sale. He should qualify as his recent divorce and stagnant real estate market has left him unable to sell his home and business. On average, how much are banks willing to lose in a short sale?