9 unit deal falling apart! - Any Help??

[Charlie Price]

I have a contract to buy a 9 unit deal with Seller financing negotiated and ready to close. Closing attorney called today and said there is an issue with the title. The title insurance carrier, First American Title, this attny uses will not write a title insurance policy on the deal, thus he is not able/willing to close the deal. Back in 1994 (three owners ago!) the owner passed away. She left property to 3 children. Children sold said property, but looks like only 2 of the 3 signed off on the sale. When the current owner purchased the property from a different owner in 1999 he says he knew nothing about this. He holds a title insurance policy from that transaction that he purchased from Pioneer Title Insurance company. So I'm not sure what to do next. I'm slightly concerned that if I searched around and found someone to write a title insurance policy and close the deal that I would forever have a clouded title, just like the current seller has now. But not sure how to get it cleared up. The seller is not very sophisticated at all. I'm fairly sure he would spin his wheels and never get it done, and continue to run his property into the ground. I'm sure he wouldn't go out and spend $500-$1,000 or whatever it would cost for an attny to get it cleaned up properly, which would be my next move. Do I maybe make a deal with him to hire attny to clean it up and back it out as a credit at closing or offer to split the cost? Walk away and let him figure it out on his own and call me back when it's cleared up, which would probably never happen? Sales price is $275K. Needs about $75K in rehab to get it where I want it. Future rents would be $10K gross per month after rehab. NOI in the $6K range/mo. (self managed) It's 1 mile from the beach in Pan Handle Florida.