Joe, I have not seen where a SELLER'S LENDER will allow the SELLER to occupy the property after the closing (as mentioned below), but I suppose it could happen. However, I don't think the SELLER'S LENDER would think too highly of it. Some actually require the property to be "owner occupied" (i.e. no investor-buyers), therefore it cannot be leased.
The timing of the approval and closing typically depends on the SELLER'S LENDER. The SELLER can move out anytime they want, on or before the closing date. The closing date deadline is specified in the approval letter of the SELLER'S LENDER and is usually 30 days or so after the approval letter is issued which is typically within 30 days after the BPO is ordered.
So, based on my recent experience with several banks including HSBC, BofA and WF, the answer to your question about how long between the SELLER'S LENDER BPO and the closing date is typically 45 to 60 days. (During this period after the approval letter is issued by the SELLER'S LENDER, the buyer gets their loan approved which includes a separate appraisal of the property engaged by the BUYER'S LENDER. If the BUYER'S LENDER is unable to close by the closing date deadline specified in the approval letter, then an extension must be requested and approved by the SELLER'S LENDER. This could delay the process.)
Brent Rice, SFR and Top Recommended Broker
The Rice Group, Inc.