Could be any of a number of reasons... you haven't provided enough facts to know what really happened here. Quite likely the other buyer was a 100% cash buyer, with no loans required.
Or, any of the following could have been part of the scenario:
1. Your lender is mortgage broker and not a direct lender.
2. The other buyer could have been financing through the foreclosing bank.
3. The other buyer could have been purchasing as owner-occupied and you were purchasing as an investor.