I thought I protected myself from this situation by requiring they use the ach option over the credit card option, obviously not.

In my humble opinion, rent estimates are typically off by a wide margin. 

what is a better exit strategy Lease option vs Seller financing

If you're interested in exploring options further, I specialize in house hack properties across the Wasatch Front and would be more than happy to chat. 

This process typically involves assessing factors such as credit history, rental payment history, income verification, and background checks.

If the Grantor is refusing, the other option may be a declaratory judgment action which asks the court to declare the deed valid.If you elect to take the deal to another title company you may want to disclose to them the issue you're having. 

I have the option to purchase the real estate or to form an LLC, transfer the property into it and purchase the newly formed LLC that owns the real estate.

Do we have any other options?

Transplant hospitals might be another option. 

Typically for longer term rentals, but you could try to strike a deal.