Legal advice on a purchase of a unknown salvaged title vehicle?

I bought a 2007 Honda Civic in Feb. New to the military and far from home I got a car loan to purchase a used car to start me off. I got approved through Randolph Brooks Federal Credit Union and bought the Civic from a private seller. Long story short i've had a coupe issues with the car and found out that Honda extended the warranty on what i needed to get fixed I contacted Honda and then was informed that it was not covered under warranty because it had a salvaged title. When i bought the car it had a clean title. The bank even ensured it was a clean title, they would not loan me the money if it was a salvaged car. Today I called my bank and they ran some reports on the car and they said it came up as a clean title. I then called the DMV here in Texas and had them run a report, again came up clean. The lady on the phone at the DMV asked who told me it was a salvage title so i told her what Honda told me. She ran some more reports and found it was salvaged in Florida but for some reason got a clean title in Texas she said she was unsure how this could have happened and needed to speak to the supervisor and they would have to call me back. She also informed me that the reason my bank did not pick up on the salvaged title is because they ran a blue title. I do not know where to go from here, someone has to be responsible for this, a typical car fax would not even pull up that this car was salvaged.

Carfax only reports what is reported to them.
talk with a lawyer.

Your car was title washed. Look it up. I bet the car has been registered in 3 or 4 states.