You may have to spend some time and or money with an attorney. The only thing I can think that you have in your favor is to refuse to sign and approve closing unless the tenant vacates the property and you do a satisfactory walk through.
It's possible the renter is aware of the law and is not going to abuse you or the seller, but you need to put some protection in place now. You did not write an offer on a home with a tenant you need to evict.
Because you already have a contract in place and the agent knows all they need to about you, you need some stronger representation. Only an attorney can interject themselves into your transaction at this point and give you decent leverage. Most will be able to review your contract and advise you without running up too big of a bill, and in the long run whatever the costs they will be less than the cost of resolving the headache you'll have if you don't get one involved now. It's time to find an attorney.
Short sales can be very frustrating for a buyer. A competent buyerâ€™s agent will keep the pressure on the bank to make a decision on the short sale.
This said, the speed and ease of a short sale transaction varies widely, often depending on the bank. I subscribe to the approach that persistent and polite contact with the listing agent and/or the bank (conditions permitting) will benefit a buyer.
John S. Stone
Alleda Real Estate
Principal Broker Licensed in Oregon
Cell: (541) 678-2368
Short sale are tricky and because the agent is representing a family member it can be very sticky situation and the seller's bank don't like those situations.
I do not know your contract details, nor do I know OR laws, so I urge you to contact the listing agents Broker and schedule an appt. to meet.
All the best to you.