What can we do to clear the deed and are we required to pay the bank $700?

Bank paid lawyer $700.00 to do p/w and get clear deed. Old deed of trust is still out and he was supposed to get it satisfied and did not. The old deed of trust had been paid, (we have proof), but attorney said he just could not get anywhere with it. I have done all research with this and bank is upset that lawyer did not follow their instructions on this loan. Now the bank wants us to get their $700.00 back from attorney for not doing his job. Then we can reapply for loan when deed is cleared and the money is paid. The old loan is 20 years old and the place is now closed and has never been on credit report. The only actual money that has been touched is $100.00 that the lawyer gave us as reimbursement, and HE wants that back. Bank told us to give that money to the bank. What should we do?