Tax sale home title issues

[Vincent Bess]

So I came across a situation that I need help solving .recently I put a house under contract before the inspection took place on the property my real estate agent called and told me that the attorney called and said that the sellers didn't have the title because he just bought it at a tax auction 3 months ago.also he said to get the title it would cost me 3k in attorney fees.my agent then suggested that I back out of the deal.the number worked lovely on this property is there any suggestions on what I should do ?