I lost to a lower offer???? How does that work?

[Jeffrey Enkey]

I was negotiating a price on a house and just before the offer was accepted I was told someone else made another higher offer. Or so I thought....I offered 200K and was told that the other offer was higher and I lost the house. Now the house is back up for sale and if found out that the buyer paid 157K. This is from the county records. Also this was a bank owned house not an individual so I don't think there was cash under the table to make this happen. Is there something I'm missing?