I think i got screwed !

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Hello all .
Can some of you guys help me out ? We have been looking into buying a new home for our family , we`ve been preapproved for our loan and was told to go find a house .
So we have been looking and looking and finally found one ! It is an REO
we then called the realtor who`s selling the house , we meet up with the guy , take a tour of the house . We then made an offer and filled out the paper work , Now our offer was low because we wanted to find the bottom dollar hoping the bank would make a counter . Just trying to get it at a good price .
The next day the realtor calls us and say we need to fax a copy of our good faith payment and a copy of our pre-approval , no problem we did it the same day . Well about two days go by and we`ve have not heard a thing from the guy so we call him up and ask hows it going with our offer .
Ok here is where i think this guy screwed us over . He says he did not sumit our offer becuase someone ealse did through a different realtor he even told us how much their offer was !
We can`t help but feel this guy is a crook ! So our question is do we have any legal rights if our offer was made first ? The paper work shows the date and time .
So what do some of you guys think ?