The previous owner has also agreed that he had promised them that they could stay until that date.Ive since had a response from the previous owners lawyer:“The tenant is occupying the property pursuant to a verbal lease agreement with the prior owner extending the term of the lease until March 31, 2022 as set forth in both estoppel letters.If the prior owner is called to testify in eviction proceedings, the prior owner will have to testify as to the agreement with the tenants as stated above.”Ideally I would like the tenants to vacate asap so we can renovate and increase the rents.

I don’t think there is an option to extend.  

Then offer to extend the term as desired. 

Hi, My tenants notified me they would like to extend the lease.

My last purchase I used a hard money lender, did my rehab, got it rented, all set to go except....I can't refi...I am not sure what my move is now, my hard money loan is about to get extended but the payments are killing me since I cant get out of it.

By that time the moratorium will probably be rescinded everywhere as its over 85% right now and will be over 99% gone by the end of January asuming the places its still around dont extend them again, which I understand is an if. 

Her contract is due in May of this year and I’m not definitely going to have her renew it.Last I heard, they extended it to 2025, but you don't have to accept it. 

When he notified the seller's agent the next day (one day past the option period), he replied that they would not extend the contract and also keep the earnest money.We need some advice on what our options are here to recover the earnest money?

Leverage is your friend as long as you don't over extend yourself.  

If there is any way to extend that to 2 or 3 years, I would do so.