Multifamily Residency with illegal basement unit? What are the options for the illegal unit?

[Norm M.]

There is a 3u multifamily that I am looking at - it has a illegal apartment in the basement. My original plan was to purchase and live in one of the units to qualify for owner occupied financing.

What are my options? I have no interest in dealing with headaches associated (ie: fines, tenant eviction issues in an illegal apartment etc), and am tempted to request that the unit is returned empty with the tenant evicted.

1) Will I pass inspection/apprasal to get financing if they see 4 units in a legally 3 unit residency? Will I be required to tear down the unit?

2) I'm not quite sure with all of the zoning issues in this particular neighborhood, but I assume it would not be easy to make the basement unit habitable (not sure if its just an egress issue)

3) If the house is currently fully leased, would it be possible that I stay in the illegal unit in the basement?

4) if the apt is sold to me with hte tenant evicted from the basement, is there anyway I can be held liable for what the pervious tenant did? (ie: the tenant ends up reporting to the village that theres an illegal unit in there).

5) Any other issues to consider?

Thanks