What does it mean when the lawyers responsible for selling a house can't find the "deed in lieu"?

In all candor, this makes no sense. A "Deed in Lieu" is when a borrower is behind on their mortgage and agrees to simply convey the property to the lender, a "Deed in Lieu of Foreclosure". The deed has to be recorded. If you are buying from a lender, perhaps the deed from the previous owner did not get recorded and is lost. The bank will need to get the previous owner to sign another one, or foreclose, to get title to the property. A quick title search would reveal if the deed in lieu was recorded.