Trustee is trying to void my mortgage in Bankruptcy court

[Adam Walter]

I have an interesting situation and trying to figure out the best solution.  I sold one of my rentals to my tenant with a seller backed mortgage and note (this is in Ohio).  The date of the note and mortgage was October 31st, 2018 and recorded on Feb 4th 2019.  I went through a title agency which was owned by a real estate attorney, but his assistant handles all the transactions.  I was the one who noticed the mortgage wasn't recorded yet and got them to record it.  

The tenant (now owner) filed Chapter 7 bankruptcy on April 12, 2019 and the property was exempted.   On June 18th, 2019 I receive a letter stating that the mortgage is subject to being voided because it was recorded so late and then the bankruptcy was recorded shortly thereafter.  He may attempt to void the mortgage and sell the property.  I contacted the Title company and spoke to the attorney/owner and he said he would take care of it.  The assistant is no longer there and she created a huge mess, my situation only a small part of it.  

After 4 or 5 months of back and forth between the attorneys, nothing happens and then covid hits so I don't hear anything for a year.  I thought everything had been taken care of.   Last month, I get a summons from the bankruptcy court for the mortgage to be voided.  I hire an attorney and he just informed me that he spoke to the attorney/owner of the title agency and he says that the title agency has no money and basically not going to do anything.  The attorney/owner is older and probably should have retire years ago.  

The craziest thing about this is the tenant filed bk for around 10k, the trustee is looking for something around 13-15k to pay all the fees and court costs.  The mortgage amount is around 42k and the property is worth around 50k.  So far, I have thought of the following plans of action:

• 1) Sue the title company:  I feel this is the most expensive route to take, and am not sure if I will get anything out of it.  It may force him to file a claim with his E/O insurance.  My attorney says that he is currently in the middle of a big lawsuit.
• 2) Just pay the trustee:  Although it's not my fault, it's better than my mortgage being voided.
• 3) Negotiate with the attorneys:  ask the title agency attorney to see what the most he can pay and negotiate with the trustee to see what the least amount he will take and fill in the void.
• 4) Fight the motion:  Maybe the court will have pity on me.

Anyone have any additional ideas/thoughts?  Thanks