I agree too, but..

sounds that if you know any property is in pre-foreclosure stage, you can go to the property and make an offer to owner/borrower. In that way, the owner could avoid bad credit history and may get cash before leaving; and you as an investor might get the better deal than on trustee's auction or REO sale.

I think buying on trustee's auction is very risky because you won't know if the original owner would damage the house or not even after you have paid in cash on the auction. And you may have to expel the owner if they don't move.