I haven’t been on the seller side of this but have been on the buyer side a couple of times.And definitely have your attorney draft up the agreement so that you will be protected.

Are loan docs attorney prepared or prepared in house...big difference on costs there.

Moreover, they'll push to close with their preferred closing attorney, which shouldn't necessarily be a deal killer.

Bob gets an attorney, sues the bank.

It won't matter if they hire an attorney to fight it, because the databases that report evictions only care about whether or not an eviction was filed. 

We don't allow hard money lenders, only the sponsors (real estate attorney, title company, and my lender) and they don't pitch either.

If its an attorney closing state same thing ask the attorney or one of their staff.Generally though be care of those reaching out and promising rates that are simply better than current rates thats almost always a fake lender or a bait and switch..

If the seller misrepresented tenant conditions, consult a real estate attorney about potential legal action.

Talk to your attorney and/or CPA. 

You'll want to talk to a local probate attorney to see how much time that could take.If the squatter is not making mortgage payments, you've got perhaps another month or two before the lender begins foreclosure proceedings.In your situation, I would approach the squatter to see inside the property to assess the condition.