What is the strategy when wholesaling pre foreclosures? What does it do for the person in pre foreclosure?

The strategy is no different than any other wholesale deal. Get it under contract cheap and flip it before it goes to foreclosure. If they owe more than you can flip it for, you’ll have to do a short sale.

To answer your 2nd question, the owner gets their house sold before the lender forecloses. No one wins if they foreclose.

If it is not a problem could you give a basic scenario on how to do this ? im thinking if the person owes lets say 40k. i want 5k . how does this play out?