Suppose that the $\lim_{x\rightarrow c}{|f(x)|}$ exists. Give an example to show that $\lim_{x\rightarrow c}{f(x)}$ may not exist.
I had done a similar problem using sequences rather than using functions where {$x_n$} = (-1)$^n$ was the correct sequence, but since that is not a function. I can not use the same idea for this problem.
Should I try to solve this using the Delta-Epsilon Definition or is there something else I am missing?
Something rather similar to your idea (which worked for sequences). Take $f$ defined on $\mathbb{R}$ by $$f(x) = \begin{cases} 1& \text{ if } x\in\mathbb{Q}\\ -1& \text{ if } x\in\mathbb{R}\setminus\mathbb{Q} \end{cases}$$ $\lvert f\rvert$ is constant, equal to $1$; so continuous everywhere, But $f$ is discontinuous everywhere.$^{(\dagger)}$
Note that you can replace $\mathbb{Q}$ by any set $A$ dense in $\mathbb{R}$ such that $\mathbb{R}\setminus A$ is dense as well.
$(\dagger)$ Indeed, for any $a\in\mathbb{R}$ and any $\delta>0$, the interval $(a-\delta, a+\delta)$ contains both rationals and irrationals, so $f$ will take both value $1$ and $-1$ in $(a-\delta, a+\delta)$. Now, take e.g. $\varepsilon = \frac{1}{2}$ to contradict continuity at $a$.