It sounds like you are more scared of the confrontation than anything else.

Additionally, confronting any buyer or borrower and attempting to influence them to abandon their rights can also be a problem.

Did you consider confronting this applicant with your newly discovered information?

Try not to be confrontational and self righteous.

My tenants have said they are starting to fear for their safety and dont want to confront them.

Just the fact that you have to issue an eviction notice should be hint enough that there's going to be friction and likely a confrontation. 

"Confronting fear, weaknesses, and neediness by choosing our own thoughts is the way out."

Subsequently confronted tenants, and tried evicting them, however they had no money to move.

and do i confront them ( causing trouble for the other tenants until they are gone) or do i act like I know nothing and give them notice to vacate?? 

Sally has to follow USPAP, and she's confronted with your seller that has neglected this home for over two decades, including but not limited to (list things identified by the appraiser here).The bottom line is that your seller needs to come down in price, or they will waste another 45 days of their time, and yours, and net twenty five to fifty grand at the end of the day.