REO - Lender conditions for closing

[AJ Biz]

We are in escrow for a 4 plex that is REO. My loan is moving along fine through BoA, and is approved and ready to close except for one condition.
* 1 unit needs a fixed heating source installed.

The holdover tenant (previous owner) has the keys to that unit that they were using before. They've now all but moved out, and show up once every few days (per tenants in the other 3 units)
They are NOT cooperating with the listing/sellers agent in letting them install the heater (condition to close and fund the loan).

The selling bank (US Bank) is not wanting to make any calls or get involved. Listing/buyers agent (same company) sent them a form to sign which would give the holdover tenant notice of impending repairs. But they refuse to sign that too.

BoA is refusing to even accept money in a "repair" escrow from us. I am willing to pay for the install. Its hardly any money given the potential gains.

How do I close this deal?

[Jon Holdman]

Its very surprising that this is a REO and former owners are still that. That's sheer incompetence on the part of US Bank. Its their responsibility to deliver clear title, and that includes it being empty.

Those folks are going to have to be evicted. After the sheriff's sale, the new owner would usually be the one to do that eviction. Blows my mind US Bank has not. Is this such a great deal that you're willing to deal with this eviction? The expenses could be considerably greater than just the cash-for-keys and the furnace.

Could you close the deal with hard money, deal with these squatters and the furnace and then refi? Expensive, but if there's enough room it might be worth it.