Can a bank have a house under contract to sell when they don't even have a certificate of title?

We signed a contract in January to close in February paid for the inspection flew down there for the inspection. The bank comes back and aks for an extension to March 11 because they have additional paper work to file the 11th is near and now they are saying they need more time because they do not have a certificate of title even though they foreclosed on the house in June of 2010 court docs signed and all. How is this possible how can the bank put a house on the market and make empty promises on a house they don't have a certificate of title? We have young kids and a whole house to move and now no where to move to. We are moving March 25 my husbands job is relocating. They wasted precious time and I know if we would of screwed the bank over they definitely would seek reimbursement. So can we?