Tips on Buying Cars: bought a lemon, salvage title, auction cars

Question
I live in TX and I bought a car from a guy that said it was tagged and inspected. Turns out the tags belong to another car and so does the inspection. We asked specifically if it had a clear title or a salvage or rebuilt salvage title and they said it was a blue title. They didn't have the title but was supposed to pick up the paperwork from the auction they bought it from. They were supposed to meet with me to give me the paper work. I haven't received it yet but i have in writing that they were going to get it to me by a certain date that is already 2 weeks overdue.  They claimed they sent it by mail. They gave me a paper from where they bought it from the auction and it clearly stated that it was a rebuilt salvage title.
to break it down.... I have a car that runs awful( i know that is on me)  that has illegal tags and inspection... can't get tags without the title and i can't get the title without the paperwork.
What can I legally do?

Answer
Hi Regina
I really don't know where to start, you have done everything wrong,
Now you have paid for a car without getting a title , go to the police these people may have many scams behind them.

What is a blue title ???, the only thing I know thats blue is the kelley book?. here is a webpage about buying auction cars  http://www.usedcartips.org/AUCTIONS.html  have you got a contact name and address for the seller, if yes, contact me through the website

 Ray