Kym:  My question is whether or not they can write policies off of a product that they don't actually own, given their lack of payment.   I wonder if contacting the title insurance companies they're writing for would be useful. 

 I know nothing about lawsuits; but I do know people around here who have successfully gotten paid through small claims court actions.  Possibly to take care of it out of state you would have to hire an attorney which might be way too expensive, which might actually be what they're hoping for.