Believe it or not this is not all that uncommon. This happens because people do not use a thread chaser on the crank threads before re-seating the HB. There is always junk in the crank threads that needs to be removed beforehand.
There are lots of little tricks. Easyouts, tack welding a bolt to the broken bolt, heating carefully around the broken bolt, drift punch, etc. MAC and Craftsman both make a nice EZ-Out set. They have the reverse drill bits on one end and then the corresponding EZ-Out on the other. Sears has the Craftsman set.