They painted the oven? Do you have a picture? Honestly, it doesn't seem so safe to paint something that gets hot. Who knows what kind of fumes could occur. Therefore, I wouldn't refinish it...
You can get a new oven fairly cheap. Check the Sears Outlet. They have ding-and-dent appliances. The prices are automatically dropped after an appliance sits for a X number of days, so you can get a good deal if you're patient. (We got a $1300 fridge for $400, it just had one small dent that we covered with a magnet.)
There may also be a local dings-and-dents appliance store near you, check around.
I hope you're getting an amazing deal on this house...sounds like it has a lot of problems.