A home in default does not mean the house is for sale. It simply means that the homeowner is now in default with their mortgage or in other words behind on their payments. Depending on the State if this home even gets to market for sale (as many don't since owners may negotiate loan with lender and keep their homes with a loan modification). The first stage would be a shortsale if the lender even allows it. Also, since the owner is in default you will likely NOT be able to negotiate this solely with the buyer as shortsales require the approval of multiple parties including the buyer and lender/investors.
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