bank refusing to release info to the title company

We are in the process of buying my dream house in California. The sellers bought the house at an auction. The previous owner filled bankruptcy, his wife died and he lost the house at about the same time. We have done all inspections, released everything on our side, even our money is sitting in escrow waiting for the title to become a clear title. Well Chase bank is refusing to give the info to fidelity title company to make it so the current owners can pay off the last bit owed on this house by the previous owners. Chase bank wants signed documents from the previous owner before they will release anything. They have been sent legal documents stating that the sellers do in fact now own the house and documents that the previous owner went through bankruptcy and all that is completed. Yet Chase bank keeps on insisting that they have to protect the previous seller and not let the title company pay this off. I am so confused and Chase wont explain anything they just repeat over and over the same thing that they need the previous owners signature and that they have to protect his rights. Is this normal? Has anyone else had something like this happen? What can I do? I don't want to loose my dream house. The previous owner is very bitter and angry over loosing the house and his wife and will not sign anything. He said that he wants nothing to do with that house ever again and if anyone wants his signature to take him to court. We have to be out of where we rent in the next week. We thought we had the house. We are paying with cash so we figured that there wouldn't be any reason we couldn't and the rental company already has new tenants. Any advice would be greatly appreciated. Thank You!