As far as legal challenges, there is little you can do to force the bank to do anything. These are massive companies with too many moving parts to track most of the time and ultimately many files end up neglected somewhere. It is important that your agent keep the pressure on the bank closing company for constant updates. In most bank addendums (the Addendum A) there is a provision that would allow you to back out of the contract if the bank can not rectify the situation within 30 days of discovering the title issue. If that is the case here, you can get out, though I would not advise that. As an REO agent, I have run up against this quite a few times. It really comes down to your ability to wait it out or not. The rewards typically out weigh the risks in that you know the bank will square the issue eventually and you will get the home, which I am sure you have already invested time and money in due to inspections, appraisal etc. Word of caution, if your bank has a per-diem assigned to the property for failure to close, make sure any subsequent extension states that you are not to be charged this per-diem. Good Luck.