In my estimation the young lady who originally owned the house should have gotten a good lawyer and sued the pants off the county. I think a lawyer would be willing to take the case without pay from the owner, and plan on making his fee from the settlement, since it should be a very win-able case.
She should demand replacement value for the house (i.e enough money to buy a similar house or buy back the same house) plus damages for making her temporarily homeless and causing her a great deal of agony, plus attorney fees.
Where's Geoffrey Feiger when you need him?
I agree. You can't take the property away from Person B, but Person A should be fully compensated.