Toyota Repair: Toyota Engine, 2007 toyota camry, toyota camry

Question
I have a 2007 Toyota Camry 4 cly with 103,000.  My last maintenance change was October 2011 got a oil and filter change. The 1st week in December 2011 the check engine light came on, it made a ping noise and the engine shut off.
I had it towed to be check, was told the car overheated the engine had froze up and something about the waterpump and something about there is no compression, told the engine needs to be replaced (6,200.)   I don't understand what happen?? Is there anything else I can do.  Still have 2yrs of notes to pay.

Answer
Did you have it towed to the same shop that changed the oil? I also have a hard time understanding this because there is not enough specific information, I need to have an explanation from the repair place what they say happened and so do you, I mean specific information as to what caused the engine to fail,if you took it back to the same place they may not be telling you the truth and are covering up a mistake that they may have made causing the oil to leak out, engines do not just seize unless they run out of lubrication(oil) or coolant, I would seriously consider having the car towed somewhere else, preferably a toyota dealer to find out what actually may have happened.