I'm afraid I can't say much from here. I'm not sure exactly what you mean by 'nothing worked,' since rashes near the lips often stay red long after the rash is gone, which some patients interpret as 'not working,' when in fact it did. From your description, I'm not really sure you have anything wrong at all. If I were you, I would stop all medications and lotions, leave the area strictly alone--no picking, rubbing, or even close examining-- and then show it to a skin doctor in a month. You certainly don't have herpes or some other infection, so there's no reason not to wait and let nature do what it's going to do. If necessary, and it may not be, your doctor can help then.
Take care.
Dr. Rockoff