Doing something like that is a short sale purchase.
If you know the person at all, it is a very bad idea.
It may constitute bank fraud.
you may want to read this blog
skip the first two if you wish but the following three might be of interest to you.
It is short sale buying short sale selling and bank fraud in short sales.
Harold Sharpe - Broker
So Cal Homes Realty
CA DRE License 01312992
Many lenders have found that it is easier to Short Sale Pre-Foreclosure properties to an end user rather than take on the expense of foreclosure.
Take a look at the following link about buying a Short Sale Pre-Foreclosure property.
Scott Slocum, REALTORÂ®
Licensed Real Estate Broker Associate
Florida Future Realty, Inc.
2816 Del Prado Blvd South Unit 2
Cape Coral FL 33904
You should also be represented by a buyers agent in this transaction. A selling agent or buyers agent would keep you up to date with how the short sale negotiations are going. As well as make sure the seller complies with all local, state, and federal disclosure laws. It really is in the best interest of the buyer, and best of all will not cost you a dime.