Clean title -> Countrywide corrected a mistake -> Mortgage Appeared - Need Help!

[Andrew Clark]

Bare with me...

Key facts:

Shane bought a home in 2006 with a Countrywide mortgage. Countrywide recorded their lien using the incorrect 'legal description' of the property.
Shane stopped paying his mortgage somewhere in 2008.
Shane sold his property to Daniel in 12/2009 for $25K cash. Daniel did NOT get title insurance or have a search completed (a bit fishy).
I purchased said property in 3/2010 for $60K cash after I had a title search completed (free and clear) and purchased title insurance. It came back free and clear because Countrywides incorrect legal description of the property did not link this mortgage with the property.
Countrywide decides they should pursue a foreclosure against Shane. They realized their 'legal description' issue and miraculously correct it. BAM!!! All of the sudden there is a mortgage on my once free and clear property.

I have already rehabbed this property and have a closing date set with buyers utilizing the 8k tax credit. I've been advised if I am not able to sell this property, the buyers will sue me for their 8k tax credit loss and their re agent will sue for the loss of commissions.

My question is, what right does Countrywide have to just 'update' their originally incorrect filing. Keep in mind, their update didn't happen until two deeds after their original owner. I understand when a mortgage is granted the grantee signs documents agreeing to help correct any typos and filing errors, but I didn't agree to any of that. I understand Shane was trying to pull the wool over everyones eyes (probably in cahoots with Daniel), but I want to know if this magic mortgage appearance is legit or will Countrywide have to eat this mistake once pressured?

I am meeting with my lawyer in the morning to sort through this mess.

For as much of a mess this is, I am looking forward to getting knee deep in new information. You can't learn this in a book!

Any advice will be greatly appreciated!

Thanks!

Andrew