The issue here is you are paying an agreed price for the short sale BASED ON the property being vacated and in a certain condition at the time of possession.What the bank wants is to dump the property on you with the former homeowner still in place so you handle the problem.Depending on if you are flipping this property,renting it out,etc. you can have lost income (holding costs) and damage to the property from the home owner staying after closing.If I was doing this I would go back to the bank and give them 2 prices.One is with the property vacated and secured and one is with the former owner or tenant still in place.If you are going to take on a problem like that I would ask for a substantial reduction in price or not buy at all.The bank has to understand if they want to dump a problem it is going to cost them not to handle it and get the people out or to comply with the purchase agreement.I don't really see how an agents commission plays into this.They can't force the current owner to do anything.I think people get confused with the power they believe brokers and agents have with legal issues in a transaction.

Can you get a tax reduction through depreciation on the property too? 

And when you make a reasonable offer it is as likely as not to be ignored or countered with a reduction of a few hundred dollars. 

Fannie Mae generally prices high, then does price reductions in $10k increments on a fairly regular schedule until they start getting offers.

Flip can be more difficult as the margin is <10% often with a price reduction.  

It will pill up.

I found an MLS property that had been on the market for a long time and had gone through many price reductions; after a few months of negotiation we closed on December 17th last year. 

I had estimated that on one of my properties, the taxes would reduce nearly $150 / month just because of the tax reduction down to the purchase price.  

But, there is no law restricting the sale of forms, it's the drafting of the forms that becomes an issue.Anyone can write a contract IF they are a party to that contract, one of my biggest gripes is that people seem to think they know enough about contract law and real estate that they are qualified, they don't have a clue, a hard pill to swallow, but they really don't in addressing all that needs to be addressed.

Or, you may be able to get a lower rate for a very small reduction in rebate.