By working with your tenants and keeping the communication open about this issue, you can take proactive actions to prevent the pipes bursting.

And who is a good communicator.

Quality Communication.

Thank you for your interest, and I look forward to communicating with you about your current housing needs.

Make sure you have a buyers list that receives private communications.

I think a lot of the issue though comes down to communication.

In California, the landlord needs to return your deposit minus expenses within 21 days.I would recommend any future relationships you have with a landlord be formal and any communication regarding repair requests, lease terms/agreements,  etc be in writing.

We are working with the closing's title company - they are reputable and we have an open line of communication with them, and the listing agent, seller's lawyer, and the reputable title company have told us it's clear there are no liens - to make sure we are sufficiently insured in the title insurance, to make sure the title policy has coverage without any of the liens exceptions listed on auction.com:"Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:Any lien recorded on title prior in time to the foreclosing mortgage.First Mortgage (if the foreclosing mortgage is a second or third mortgage)HOA or COA assessment liens (in certain states)Mechanic’s Liens (in some states)Government liens such as state and federal tax liens, city or county liens, US Government liens.IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)Code Enforcement Liens, Environmental Liens, and Utility LiensChild Support Liens"Is this the right approach for bank-owned?

ABC has threatened not communicating with us after the lawyer sent them the letter. 

Schedule the work, plan it, start moving things in to complete, etc.You can narrate the situation meantime as communicating hope that you can still work things out with regards to rent, etc - seeing a place become nicer can also motivate someone.