Realtors Pulled another fast one

[Dale T.]

We did the Short Sale work on a property and recieved an approval letter. Some time after that the Realtor called us and the Homeowner (realtor is her aunt) and said the bank wants to see if it does not sell that they are going to do a deed inlieu or cash for keys deal. We said Ok, and backed out of it at the homeoners request. We have an Notice of Option contract recorded at the court house. So if they were not going to do a cash for keys and try to steal it from under us and sell it, we would be covered because it would not clear Title. Well they sold it out from under us and there was no cash for keys deal. There Title company ignored or missed the recorded contract we had.

What recourse do we have on this and how do I find out who the title company is? or any other suggestions? thanks