Title Search Defect

I am buying a townhouse here in downtown Ft. Lauderdale, and was set to close next Friday. Was a bank owned property. Contract, Down payment, financing, seller contingencies, inspections, appraisals, etc. were all in place and complete. I had to use the banks title company. They just ran the title search today and relayed to my realtor and attorney that the title has a "cloud" on it. Apparently there is a unit either next door or behind my unit on the other street that is in foreclosure, and THEY had a clerical mistake and used MY properties legal description in their foreclosure proceedings, which places their mortgage liens on my property. I was so close to closing and had everything in place for the move, etc. They just killed me with this news. A real estate attorney I know said best case scenario they can go through the motions of getting the bank to correct this properties description and remove the liens, which can take time. Worst case scenario is that property has to go to re-foreclosure, which obviously can take months and months. Is the info I'm receiving about scenerios correct? Something does not seem correct. Why should I suffer for some idiot neighbors clerical screw up? Have you seen this before? Is there anything I can do to speed this process up and make sure their doing what they should be doing in my interest?