I hope to remedy the situation however I need a solid opinion on how I should proceed.

They need to remove residents and get full remediation done by certified professionals.

Will they definitely clear that prior to closing since the bank foreclosed or is that something I need to remedy after closing? 

I know that Greg Stanley disagrees with me.To be clear, I think the law about judicial redemption rights is a remedial measure intended to fix the problem of investors buying tax sale properties, laying low until they have a tax deed and the administrative redemption rights have expired, and then filing ejectment lawsuits to have (often surprised) owners thrown off the land.

The rehab was installing a new roof, 3 new HVAC units, 4 Water heaters, Replacing a missing window, remediating lead paint, rotten wood replacement, and cleaning and painting unit I moved into after having to evict a tenant that was in violation of their lease.

The owner says access to the house is blocked by a creek, which would need to be remedied by installing culverts or suing a neighbor for easement.

In addtion, if you read here-  http://www.dca.ca.gov/publications/landlordbook/re... it says that "The "repair and deduct" remedy allows a tenant to deduct money from the rent, up to the amount of one month's rent, to pay for repair of defects in the rental unit."

The CPSC (consumer product safety commission) endorses pig tailing the connections as the acceptable remedy.

Lead Free costing about $1000 (for the test and the final cert) and Remediation costing closer to $200-300.

To those that are experienced wholesalers what are your remedies to avoid this situation?