Buyer/Foreclosure/Legal Description problem

[tinabuggy]

What is the name of your state (only U.S. law)? Florida but property in Georgia.

We have a binding contract for a foreclosed property in Georgia that we started the process of buying on April 15. We have had to had two extensions and right now it is until June 30. Here's where the problem is. I am being told their is a problem with the legal description and the bank is going to have to work with the title company and title insurance since the original sellers will not sign any paperwork. The realtor also stated that it will probably take a judge to get this cleared up. The realtor said that she was told to release the buyers (which is us)

This is what I think this means. Since there is a problem with the legal description doesn't that mean that the title company did not do their job and therefore liable. Also I think it means that that property in essence was not sold to the people that was foreclosed on. Do we have any legal litigation since we have a binding contract with $1000 earnest money that they have had since April. This is a statement in our contract:" If seller fails or is unable to satisfy valid title objections at or prior to the closing or any unilateral extension thereof which would prevent the seller from conveying good and marketable title to the property, then buyer, among it's other remedies, may terminate the agreement upon written notice to seller".

Does this mean the realtor just tell us they are terminating the contract and just give us back our earnest money? Can we do anything legally on this situation?
If we want to seek legal counsel do they have to be in the state of Georgia?