Man I hate that shit. Assuming this is in Texas I pushed back for my law partner when she was buying her mothers house. Title Co Atty sent the case law they thought was their ace in the hole. We shot all kids of holes in it, it had literally nothing to do with the actual situation (in the case the lender lent money to someone for a “purchase money mortgage” to buy a family members house on a sale that didn’t actually happen, so the person who signed the deed of trust didn’t actually own the home, and there was no ability to foreclose). Got the message back that essentially “we don’t care. We still won’t issue a title policy, good luck finding someone who does.” It wasn’t worth the fight so we gave it up; but it goes to show you; it doesn’t matter what’s legally correct in this situation.
Also, makes me want to start a title company. “Fuck you, pay me” as a business model seems nice.