The whole situation is unfortunate, but as we say in real estate - put it in writing! I participated in a NAR webinar yesterday that dealt with Short Sales, but one of the tips, I believe, would serve well for buyers dealing with bank offers also. His tip was to write on the purchase agreement something like "Buyers contract prohibits other offers from going to the bank - the only offer that goes to the bank, etc...â€
I can sense your frustration, but keep the "faith" if you will, so many of these deals fall through who knows how this deal will end. I hope things workout great with your purchase. There are some great deals out there and you chose a GREAT time to buy! Best wishes!