Moving to first closing on MFR!!

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As I begin moving toward closing on my first MFR we have ran into a snag. Hopefully this will be resolved soon however.

Problem: Owner brought lot next to property and combined the porperties in 2012. There was some sort of foreclosure on the lot or property that was on the lot prior to his buying (quit claim deed from that owner) and now it seems that the title company wont insure until the foreclosure issue is resolved, which means additional title services are need in the amoubnt of $750 and up. No one is willing to pay for this service, however the seller claims they know of a title company that will proceed and we will see if this is true Monday. I'm sure nothing will come of this investigation that will haunt the buyer, as the owner has not had anything come up in the 3 years he has owned and combined the parcels,  but I understand his concern to have everything cleared up before closing, this is why quit claim deeds can be risky if something does come out negative regarding the added lot. 

Has anyone else run into a similar situation?

Does anyone know of a title company that handles these type of situations so that it does not effect the new buyer?

Any input would be greatly appreciated.