You can "eliminate" the title in Washington, and have the whole shebang taxed as real estate. And it sounds like the lady used to have a mortgage on the property, and a mortgage company would insist on eliminating the title, so the mobile couldn't be sold off separately.
But what troubles me here is that you say you "purchased the home with a signed title." If title was eliminated, part of the procedure should have been her turning in the title, so she wouldn't have it available to sell. Maybe she told DMV that the title was lost, and just kept it.
All that being said, I'll urge you to get a lawyer familiar with the procedure, as the others have. Having a case resolved by a bunch of tractor jockeys is dicey, at best. Also check with the title issuing agency if the process can be "unwound"- mobiles do fall into disrepair, and need to be removed from the real estate- and they have a process here to do that.
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