Difficult tenants in house headed to auction

[Rich Hupper]

Hello BP community. 

I have a homeowner who bought a multifamily a few years ago, hired a management company to keep it maintained and rented, and basically forgot about it. Now the place is trashed, tenants stopped paying rent months ago, they are behind on their PITI 22k. Management company is pointing fingers. Property is worth around $120k. Loan is balance $180k. They are ready to let it go to auction. However I have a cash buyer interested in making an offer. The bank wants the property listed on the MLS before they entertain any offers.

Where the current tenants are making it very difficult to get into the property, wouldn't it be in the best interest of the bank to entertain an offer now? It is going to be very difficult to show this to groups of people, if at all. 

In a hostile tenant situation like this what is the best course of action?