I’m 50/50 on weather I’ll cure it at the closing table.She’s so brainless she sent over a counter offer that legally can’t be enforced as it’s not in the contract that there’s a counter.

If it's a nuisance advise the owners of the nuisance and ask them to "Cure it".Also, it's best to witness it yourself.

I agree with your friend to get all legal mumbo jumbo about its legality and what you must do to correct it and any known or unknown and known pollution and what you'll have to do to cure it. 

Send them a 14 day notice to cure.

I saw enough to cure any inkling I would have of investing in a non performing note of any position.

If this doesn't fix it then there is probably one of the heating elements out.If that doesn't fix it easily then I would send PM and owner a letter and tell them they have 14 days to cure or you will call a plumber that advertises on TV (They will be expensive) and take it of the rent. 

If not cured or paid off, the sale will occur.

If not give them a notice to cure. 

Fear is worrying (maybe rightly with good reason).If you want to limit fear it might help if you can replace that fear with self-confidence (only you know what you will need to do, or learn, or have to accomplish this).Some people cure their fear of financial hardship by deciding to live on whatever money they can get without worrying about it, and some people just go forward in fear (it's called Bravery--but know they give purple hearts to some for it too).Some people fear working hard and not profiting enough from the work (the unknown risk factor) and some fear losing money--either way it's worry....War face: https://www.youtube.com/watch?

My Question is can we have the release cured through the sellers proceeds at closing or does the owner need to straighten this out prior to closing.