Legal Question in Real Estate Law in Virginia

No Title Insurance...what are my rights?

Long story short, we received a call at 5:05pm the night before our first thing in the morning closing saying that everything was set up and ready to go...except they were showing a $75000 home equity line of credit my husband and I had on our home. I knew we did not have one and said there was a mistake. Well turns out the previous owners still had one. When we bought the house 3 years ago, they had a line of credit with a zero balance. After we bought it, they thought the line had transferred to their new house (why is beyond me!) so they wrote some checks. Well, that line was secured by our house and the lien had never been removed when we closed. They are in the process of getting a new equity line to pay that off and have the lien removed. I guess my question is, what rights do we have? We did not purchase owners title insurance at closing, but seems that still wouldn't be speeding this along any..just pay for any legal fees. Meanwhile we can't close on our new house because of this and have nowhere to go...we let the people buying our home take prepossession since their kids needed to start school. We were not allowed to take prepossession on the new house though.

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