The owner is only in the very beginning of the foreclosure process. It will be quite some time before it would be bank owned, and even then there is only a small chance the bank will opt to put it up for auction. Most times the bank will list it with a realtor at a price that reflects comparable home sales in the area.
If you really like this home, you should consult with a local realtor to counsel you on the what is the lowest possible offer you can make to the owner given their current situation without being rejected. Working with the owner you will have a better chance at making a deal. Once the bank owns it, they will be looking to recoop their legal fees etc that goes along with the foreclosure process.
I am a Cerified Negotiation Consultant and also a local agent that knows the Prairie Trails area well. Please let me know when you are ready to make your move and I will be happy to represent you during negotiations. There is no fee to you the buyer to have an agent representing your interests.