Purchasing a friends foreclosed home

[Brandon Erlendson]

Hello,

We recently had a family friend lose their home to foreclosure. It comes out they didnt make the mortgage payment for the last 7 months and now they're out of the house. They have reached out to me and asked if I would be willing to place a bid on the home and buy it back from the bank for them. Where is gets a little sketchy is here.. they stated on paper I will have to state it will be my primary address/residence and I'm not buying it for them. This makes me wonder, is this a form of fraud or is this illegal? It seems like it could be as they are getting out of paying what they owe the bank and getting the house back at a cheaper price thus the bank is getting shorted. Any advice would be helpful! 

Thanks in advance.