Trying to by a house from auction?

I am absolutely confused with this process. My fiance and I found our dream house a few weeks ago and it was marked as a foreclosure but before we could even act on it, it went to auction. It didn't sell during the auction and I found it listed for sale with a new price. We went and looked at it and our real estate agent told us it was going back up for auction soon and we could place a bid on it when the auction dates came up on the site. Well the auction site says cash only and we do not have 130k in our pocket. They also said we would need a 203k rehab loan and those can take up to 3 to 6 months to get approved. I'm so lost as to what I should do. My fiance thinks we should spend money and try to fix it up enough for a conventional loan but that doesn't guarantee the house will be ours and we could be out that money. Has anyone ever been in this situation and could possibly shine some light on this shitty situation?