Let $X$ be a singular irreducible projective curve over an algebraically closed field and $\pi : \widetilde{X} \to X$ the normalization morphism. In the book on Neron models by Bosch et al. (I have slightly simplified the setup), the Picard group of $X$ is computed by taking the long exact sequence associated to $$0 \to \mathcal{O}_X^* \to \pi_*\mathcal{O}_{\widetilde{X}}^* \to \pi_*\mathcal{O}_{\widetilde{X}}^*/\mathcal{O}_X^* \to 0.$$ This seems to depend on the assertion that $\text{Pic}(\widetilde{X}) \cong H^1(X,\pi_*\mathcal{O}_{\widetilde{X}}^*)$, which is not obvious to me. If $\mathcal{O}_{\widetilde{X}}^*$ were coherent, then this would be a consequence of the exactness of $\pi_*$ on coherent sheaves ($\pi$ is finite), but of course $\mathcal{O}_{\widetilde{X}}^*$ is not even a sheaf of $\mathcal{O}_{\widetilde{X}}$modules. How can we resolve this difficulty?
Maybe the following works? Let's consider the ringed space $(X, \pi_* O_{\widetilde X})$ and also the ringed space $(\widetilde X, O_{\widetilde X})$. Certainly $\pi_{\*}$ gives us an isomorphism $$ \text{Pic}(\widetilde X, O_{\widetilde X})) \cong \text{Pic}(X, \pi_* O_{\widetilde X}) $$ which sends an $O_X$line bundle $L$ to the $\pi_* O_X$module $\pi_* L$, right? (I'm using the fact that $X$ is projective here to show that there exist open trivializing sets containing various finite collections of points). Also observe that $(\pi_* O_{\widetilde X})^{\*} = \pi_* (O_{\widetilde X}^{\*})$. Thus by Hartshorne Chapter III, Exercise 4.5 (which works on arbitrary ringed spaces), we see that $$ \text{Pic}(X, \pi_* O_{\widetilde X}) \cong H^1(X, (\pi_* O_{\widetilde X})^*). $$ Combining with the isomorphisms already written, we obtain: $$ \text{Pic}(\widetilde X, O_{\widetilde X}) \cong \text{Pic}(X, \pi_* O_{\widetilde X}) \cong H^1(X, (\pi_{\*} O_{\widetilde X})^*) \cong H^1(X, \pi_{\*} (O_{\widetilde X}^{\*})) $$ 

