Title Issues

[Curt Davis]

Ok, so my wife and I purchased a home to be a rental.  We have bank financing in place.  I tried to buy this home 9 months prior but there were massive title issues but somehow it was resolved and we got clear title to close. After unsuccessful in getting a renter after 2 months I list it retail and get a full price offer instantly for $135k ( I am in the home for $96k which is what the loan was for ).  

Now fast forward its 2 days before closing and the buyers title company finds an issue with the title from before we purchased it.  In order to close we are told we need to get documentation from the person who purchased the note from the bank as some of the language they used does not make sense.  My closing attorney states that if we con not get this documentation from the former note holder before us that this deal is not going to close.  My title insurance policy is only for my loan amount which makes me wonder if I had it for the actual value would that help?  My closing attorney is the one who wrote the title policy in the first place but the buyers will not change to my attorney to close so we are at a cross roads.   

I feel somehow I am being hosed as I should have closed Friday and now there is a hold up.  I dont want to point fingers or blame anyone as my closing attorney is doing everything they can to get the docs from previous owner but I feel that this oversight is costing me thousands and a lot of wasted time.  

Any thoughts or suggestions would be appreciated.