The bank cannot transfer ownership of this property until they can do so with a clear title. They will require time to resolve the lien issues before being able to sell the property.
Essentially your contract is cancelled. One would believe these issues would be able to be resolved within your six month window. the bank should be able to speak to this.
From your perspective there is risk associated with beginning the process over again from square one. First, you can't be certain the lien issues will be resolved and second, there is no assurance your offer is the one the bank will accept.
The liens will have to gone before a lender will allow you to close.
It may take some time to clear fraudulent lines but it can be done. They have to contact the people who put them on the property and get them removed.
I presume that you have reviewed the title to determine the liens noted. It is difficult to answer your question without getting more information regarding the property. There may be options for you to still purchase this home. What are the specific liens? What does the bank plan to do to clear up the title issues? Could you rent the home with an option until the bank resolves the title issues? There are solutions available when it comes to clearing up title blemishes, yet without further information, I cannot determine the complexity you are up against. When these situations arise it is recommended that options be discussed with your attorney and the title companies legal department on how to clear these title matters.
If you feel I could be of further assistance by knowing more about your situation, please feel free to call me. I reside in Clarkston and am a Realtor at Max Broock ~ Real Estate One - Downtown Clarkston
Kay Pearson ~ 248-860-0366