Because the heirs to the estate might want to be paid in cash today, this solution might be rejected by them.

I would like to reject his rent payment and just get possession of the property.

If they reject it, move on.

Just encountered one minor downside - tenant applicants that you previously rejected still want to live there, and they are still calling (but you know you will just reject them again for the same exact reasons).

Reject stupidity.

And come back with 70% offer if they rejected it?

However, the IRS replied to them that they cannot provide the transfer due to a "code 10 rejection".

My fear is not being rejected but actually the possibility of it turning into a deal.

It doesn't hurt to try....besides, if you get rejected, just know that's part of being an investor........you win some, you lose some.  

Using the warranty I've had the following replaced/repaired without issue:1 of our 2 water heaters replacedA Dishwasher ReplacedAn in-wall water leak repairedPool filter (sand) refurbishedCracked Water Pipes (Pool) ReplacedEvaporator Coil Replaced2 Furnaces Repaired (Make sure your filters are clean or they'll reject the claim for lack of routine maintenance).Where they really suck for us is Air Conditioning equipment.