Foreclosure deed issues on REO?

[John H.]

1 yr ago. A husband and wife's house was foreclosed on.
1 yr ago. Husband signed foreclosure deed.
Last week I signed a P&S on the REO, will close in < 21 days.
Today I saw a quit claim deed from last week where the wife sold the property to a person for $250.
I notified the banks Realtor and am waiting to hear back on what they are going to do.
The mortgage was about $140k
Anyone seen anything like this? I'm wondering how long this will be tied up now, or if it will even go through.

Thanks.