Buying REO owner occupied duplex w/shady tenant

[Kate C.]

Hi, I wanted your opinion about this deal. We are in the process of buying a Freddy Mac foreclosure. We will occupy one side and rent the other. One side is vacant, and we met the tenant in the other half. He allowed us a showing and said he was 3 years into a verbal month to month agreement following his 1 year lease.

We would like to retain him if possible, but he has not followed thru on providing a copy of the lease or responding to requests for inspections on his side.

The selling bank has not procured a lease agreement either and our lender is getting antsy.

I have read some posts cautioning investment buyers about not seeing a lease prior to purchase. However, I wonder if I can count on evicting him and occupying "his" side if we do not come to an amicable agreement with this tenant.

[Bienes Raices]

Isn't this a case where you would get an "estoppel" agreement (is that the correct term?) so that the tenant can't claim that they have a 10 year lease agreement for $1/month, or something else outlandish?

Edit: If this is a foreclosure, why is there a tenant still there? I have never seen that.