Seems like you have wiining bid BUT if auction has no title it cannot sell the property. A threat to cone after them may get you the result you are looking for. Try Louis Green or Kathi Rawls in your neck of the woods for help.
It depends on how the sale was finalized, or if the paperwork was conditional, pending production of the title. You'll be best served by contacting an attorney who is familiar with consumer law in your area for precise direction.
I am not your attorney, I do not represent you. This response is submitted for informational purposes only. This is not legal advice, nor is it intended to be taken as such. Anyone considering the above referenced situation should always consult an attorney within the jurisdiction before taking any action based on this, or any other information.
The auto auction does not sell the car. The dealer sells the car through the auction. The issue with the title is tricky. The dealer may have thought it could get the title but found out it was going to cost more money than it originally anticipated. The dealer now does not want to lose money. It may be trying to unwind the sale where it got the car. The question is what are you going to do about titling and registering the car without the title? You should talk to a consumer lawyer in your area.
The information provided should not be considered legal advice. I am not licensed to practice in any State other than SC. The results of your case will depend on the presentation of evidence, the law and other factors that may change depending on an in depth analysis of the facts of the case. Please see an attorney before making legal decisions.