[Jaynen]

Make a relationship with someone at your local bank, there's always someone going into foreclosure. It's true that if there's equity and the house is ok, they won't be so willing to deal with you; but if you can get through to the current owner then you're golden with the pre-foreclosure opportunities. Pre-foreclosure you should not be talking to the bank (well, unless you're sure it's going to foreclosure); it would be creating an unnecessary negotiation. Pre-foreclosure you want to talk to the borrower, find out what's going on, if they even want help (you to take the home off their hands), and what they want (if they want some kind of cash). Those are probably going to be your best deals, unless you find a good short sale (home with little equity that the bank is willing to sell at a discount, think about 80%).