Renting to seller after purchase

[Dejan Tirnanic]

Hi everyone, first time post but have been reading for a while now. I have a few questions related to renting back to a seller. We have verbally put a deal together to purchase w/cash a SFR from a person who is in the pre-foreclosure process and will be foreclosed on in 2 weeks. The deal was brought to us by our realtor, we have not had contact with the seller. We have negotiated price but he is including in the deal that they can rent for 2 weeks until the end of the month. We do not want this especially because we just want to re-list immediately (sale ready) and my wife is 3 weeks away from her due date with our first child. He says the bank would give him the option so is calling it a deal breaker.

Questions:

- Is it true that a bank would give a "renting back" period like this after foreclosing on someone? Through our research we believe his home loan is currently through Great Midwest Bank in SE WI

- If we did this would they then be considered our tenants and therefore subject to the WI eviction process which if they are trying to work the system could buy an additional 3 months in the house free of charge?

Thanks in advance for any shared knowledge.

Dejan