Claim of foreclosure after contract signed

[Debra Cammarata]

I found a property and put in an offer that got accepted.  signed the contract then talked with sellers attorney for closing information  (set to close with on 5-6). sent earnest money to attorney.  then 2 days later my real estate agent received a phone call from an unknown number and asked if she was the agent representing my company to purchase this property.  He said that the property is foreclosure and it will take 2-3 weeks for closing?? 

Has anyone heard of this happening and what should I do?