As my colleagues have told you, this property is in pre-foreclosure stage --- that is, the owner has received a Notice of Default which is recorded (is is now on public record).
BUT! That doesn't mean the property will foreclose or that the owner will sell.
The owner has options available to him.
1. Owner can cure the default by catching up on his delinquent payments
2. It's not too late for the owner to apply for a loan modification
3. If owner cannot get do either one, then owner can try to sell via the short sale process
4. If short sale is not approved, owner may want to give back the property to the bank via a deed in lieu of foreclosure. That is, owner doesn't have to go through the process of having the house foreclosed if he voluntary surrenders the property
5. Another option that I heard about, but not something I am comfortable recommending is to file for bankruptcy protection, If someone were to consider doing so, one should consult a bankruptcy lawyer. There are various sites online that can provide at least a modicum of understanding on how to do this.
And.,..if you're interested in knowing more about what properties are in default or in foreclosure, you can also go to the county records to research this information, or subscribe, at a fee, to services like RealtyTrac .
Good luck to you,