If one or both gets all combative and argumentative with you, then remind them of damages that have occurred at the property since their occupancy (so security deposit is probably gone) and it looks like since cooler heads can't prevail, you are just giving notice to terminate the rental agreement due to Breach on the part of the Tenant and serve both of them with a Notice to vacate (if rent is unpaid) or just the 30 day notice to terminate the lease (if one or both have stated verbal he/she does NOT intend to pay full rent at next rental due date).  

If I submit the payment to the State Treasury, what occurs next considering the owner is deceased?

And this occurred repeatedly, all within a couple of months to you, the senior member (one person).  

The best practice is to charge for damages as they occur or as you discover them.

Stick to 70% and you should be sitting pretty good even if something occurs during the renovation step. 

Though the theme of downtown homes being valued less than suburbia occurs in other parts of the Atlantic ...

Other occurances that he would claim would most likely get picked up by the property's Premises GL.  

How does a owner know that no title issues have occurred?

Anyone else notice this or other scams occurring?

An assignment of mortgage occurs when one lender transfers the mortgage from one party to another.