Double Checking On NOD Questions
Hi everyone! This is my first post and I would like to start off by commenting on how helpful and friendly everyone on the website seems! It is quite comforting to have the possibility of bending the ear of some serious pros. 
I'm looking to purchase a foreclosure as a first time home purchase. I have the time to keep saving, do the due diligence and wait for the right opportunity. Will this realistically be out of a 1st timers league? ... should I use an agent?
In my research I have come across some things that I would like to double check:
I'm sort of following a place built and "purchased" by married couple via deed of trust in 1984. Property has a NOD on 10/9/2002, withdrawal of NOD on 10/2/2003 and another NOD in 12/17/2003. Quit Claim Deed added another woman to deed in 1986... I thought a Quit Claim Deed was for transfers only. I must be wrong though, b/c the hubby has both NODs listed against his name. Which line of thinking is correct (if any) ? :?
I could only find a 1st mortage at County's records office. I recently read that foreclosure actions involving "bargain" amount sums for quality properties dated 1986 & forward have a good chance of being a defaulted 2nd mortage, b/c of the advent of home equity mortages. Am I understanding correctly that after a good deal of research on a foreclosure action on a 1984 property, finding only a colorado dept. of revenue lein against the added woman and having a county recorders staff person double check my research, I should be confident there isn't a 2nd mortgage? All leins of any sort should be listed at the recorders office, right?
If I understand correctly, a NOD has started the foreclosure process, but is considered a "pre-foreclosure". This is b/c "pre-foreclosure" signifies a time before the auction (before it is classified as REO), not "pre foreclosure", as in before the foreclosure process starts. Right??
If the home's status is NOD, should one contact the mortgagor, lender or both to make an offer?
Penultimately, the outstanding principle amount is $40K, plus the tax lein against the added woman is $10.4K, and the actual value according to the assesor's office is $197K. Give them $20K in travelling money, assume worst case scenario about $30K in repairs... get a loan for approximately $100K and walk in with 50% equity? is this too good to be true or is this the way it works? 
... and finally, I'm wondering if buying, then re-selling foreclosures is something you all do for a living (is that possible??), a hobby, just to make money, other reasons???
Thanks a **billion** for your help!!!
Oh, one other thing... I've seen hints at foreclosure pitfalls, but haven't really found (m)any. Any hints? I really like the idea of Title insurance though!
Im a begineer, I haven't steped into the pre-forclosure arena yet, but I have been doing my due dillagence and will be getting out there and knocking on doors pretty soon. Anyways, one word of advice would be to contact the owners of the property. Which is what you should of done before all your hard work getting info on the property, and might I say it looks like you did a good job on your research. But contacting the owner is what you should of done first, because how do you know if they want to sell their house? Or if they are even there anymore? You cant talk to the lender with out the say so of the Owners, unless you inteend to buy the note.
But I hope it works out for you and you get the house, because the numbers look great.
Best of luck,
James
Sounds like a lot of equity, be careful. If there really is that much equity in the property I think you can find a million people ready to help you withe the financing. The first thing I would do is to get friendly with a title company (a small - privately owned on if you can) ask the owner if they can help you check the title on that propety and that you will close with him (or her) for their help. There will probanbly be a charge but maybe they can roll it into the closing. There are MANY pitfalls in foreclosures. I just ran into a Sheriff's sale home with lots of equity; until I researched the liens and found a $247,000 IRS lien on the $150,000 property. Since the foreclosing entity did not include the IRS on the foreclosure the IRS lien will survive the Sheriff's sale and will not be divested (which makes for a very bad inestment).
If you find many of these let me know and I will help with financing.
Good luck!
Pemmb
Thank you both for your replies!
Basically, I found a list of pre-foreclosure homes at prices I liked and researched one of the lowest priced. My idea was to follow at least one property through the entire process to make sure I understand most of what goes on. Now that I know how to quickly use the database at the county recorders office, it shouldn't be too difficult to eliminate any with crazy leins before going to look at them.
The home is owner occupied, but you're right, I don't know if they want to sell or not. I got a weird feeling about the place when I went to look at the place, so I'm going to follow my instinct, although it is proving quite hard to walk away from such equity. In addition, I don't own a home yet, wouldn't want to live in the house (the backyard is a power substation) and I feel like I'm not ready to jump into owning a rental property just yet.
Thanks again for your comments!