Title Company = Not responsible for clearing title?

[Hannah Williams]

I purchased a home in a tax foreclosure a year and a half ago. I now have a sales contract on the table, and we are currently waiting on title work. I was just informed that there is an issue with title because the county didn't give proper notice to the mortgage company upon issuing the quit claim deed to me before auctioning it off. I called the title company to see what I should do, and they said they are not responsible for clearing title. Um, isn't that what a title company DOES? Now, we're at a stand-still with this contract. I'm going to try to figure it out myself (I used to work at a title company), but the title company is telling me I need to hire an attorney. There's no money in the agreed sale price for that. 

My real question is, isn't a title company responsible for clearing title?