The banks have nothing to do with the tenants or the lease that is currently in place. A short sale with tenants is not any different then a standard sale with tenants. Understand that the lease is between the tenants and the landlord and that the conditions of the lease will still be in place once the sale is complete.
Any conditions that you want to impose on the seller with respect to having the tenants out of the home prior to the close of escrow will be between you and the seller. However when close of escrow rolls around and the tenants are not out, then your recourse will be to either back out of the deal, or stay in the deal and deal with the tenants. At the very lease get a copy of the existing lease so you can check the time frame on when the lease expires.
Just remember the banks have absolutely nothing to do with the tenants, nor do they care. All the negotiation is between the bank and the homeowner.
As a first step, ask for a copy of the lease. Have your agent ask the listing agent about the situation with the tenants. Plan your strategy after you find out more information.
I have had short sales where there were tenants in the home and they always were out prior to escrow. I have heard stories about people that were not able to get them out.
