Rusty Corners

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Really, the only way you can solve that problem is to rip off the metal. Is this a stucco finish? It is common practice to use wire mesh under stucco, but is certainly not necessary if the stucco is applied to concrete block.
I wouldn't use oil paint; it will do nothing for you. Once the metal is out of the picture, you can use an exterior grade of latex; it will be a lot more durable that oil.