Advice please - title issues and heirs wanting money

[Traci Lovelace]

I apologize for the length, I'm trying to cover it all.

We purchased a HUD home and learned right after closing that part of the property was a separate parcel that did not convey. There was no survey - lesson learned. The additional lot was in foreclosure due back real estate taxes, and there were liens on it. I located one of the two former owners and found that her husband died. My title agent had her sign a quit claim deed. I paid the back taxes and attorney fees and I gave her $500 for her trouble. The liens were not recorded properly and we dodged them. There was some weirdness with the two preceding deeds on that lot and my title agent was supposed to clear it up. She never did and we never got title insurance on it. I mistakenly thought it was taken care of and a title insurance policy I received on a different unimproved lot was for this one.

Fast forward, we renovate and sell the house.  The title underwriter for the buyer points out far more clearly than my title agent ever did what exactly was wrong with the title on the lot.  The icing on the cake was that my title agent had put the wrong lot number on the quit claim deed.  Unbelievable.  Long story short, the dead owner's 2 sons and his ex wife have to sign off on a deed of correction and the widow has to sign that and a list of heirs.

The title agent who was supposed to have fixed it was contacted and after a month of dragging her feet, I fired her.  The buyer's title agent agreed to represent both sides.  I did all the legwork of locating all the parties, getting a copy of the death certificate, everything that I could to bring this to a conclusion.  Then the title person who was taking care of the file left the company.  A new person was assigned.  I met with them and went over everything for the third time.

Paperwork has been Fedexed to all parties.

The widow has already asked me for more money.  I told her I didn't have any more to give.  One of the sons reached out to me and wants me to call him, presumably because he wants money also.  I told him if he had questions it was best for him to call the attorney's office, as I was not a lawyer.  This was mostly to buy some time and figure out what my options are.

I am between a rock and a hard space.  Our buyers have already moved into the house and are renting it until we can work this out.

 I don't want to keep paying out money on this, I feel like I'm being extorted.  What can I do?  The property is a non buildable lot of no real value.  But the driveway for the property is on it.    I am an honest person and I don't want to outright lie to anyone. 

What is the cheapest way to get this resolved?

Oh and by the way this is our first investment property.