Buying Deeds

I heard of a guy who buys the deeds then short sales the property but I dont know if it is legal. Also he then negotiate with the lender and a dicount price since the lender does not want to lose its good name if you have knowledge on how he negotiates with the lender and are lenders willing to negotiate if a property is in the pre-foreclosure process please give me advise on how I should go about it.

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