Is it risky to be added as an authorized user on a delinquent act

[Chris Dengel]

I'm trying  to acquire a property after  I saw the owners moving, and they said they're letting the bank have it back. I call the bank's loss mitigation department and they said to get any info or begin the negotiations, I need to be added as an authorized user. I am concerned about being black listed from purchasing it in the future or being tied to/obligated to the mortgage of a delinquent account.  Can some one shed some light on this process? Or has anyone successfully purchased a property this way?

[Brett Goldsmith]

Yes, getting authorized on a sellers account and then trying to purchase it via a short sale could be a red flag. I would agree that a buyer shouldn't be authorized on the sellers side of the transaction to speak with the bank. I've seen buyers blacklisted for writing up offers prior to a property hitting the market and meeting the investors criteria of marketing. Anything that could make the bank feel that the transaction isn't arms length should be avoided; It'd be a shame to have an arms length transaction be construed as non arms length.