Probate purchase with title error - need advice

[Cheyenne Davis]

Scenario: we purchased two properties from the same seller on the same day. Houses went through probate already. We closed with title agency and got title insurance. We're now reselling one of the houses and have found out that it actually didn't go through probate properly. The deed hasn't even been filed in our name yet because of the mistake. 

The title agency that made the mistake and closed the sale has hired an attorney to get the sellers to cooperate with fixing the mistake and taking the house through probate. However, we don't have time to wait for that process. We have a new contract with a new buyer and need our cash out of the house ASAP. I would think that our best option is to file a claim with the title insurance? 

My questions are...

1) does a claim sound like the quickest path to getting our cash out?

2) how would it work? Does insurance just issue a new policy to new buyer and we sell as if title was clean or do we have to wait for the insurance company to sue original seller and take there house through probate?

3) If we lose our current buyer over this, do we have any recourse against title co and insurance co? Obviously, their mistake is costing us a lot of money because we can't sell now. We need the funds to complete other rehabs which we are involved in, so that's costing us money too, because we're sitting on two incomplete rehabs which can't move forward until we get the funds out of the probate house.