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Somebody 'splain this to me...

I lost my job. I moved away. I need to sublet my now empty house. I thought I had somebody who could finish out my lease. She saw the house. She liked it. I sent her the sublease that I constructed from internet samples. She wanted to meet the landlord before signing it. Yesterday she had spoken with him, that he would let me out of my lease and start a new one with her. They went to see the house together. Tonight, I just got an email from the landlord saying that he thinks she likes the house, and "a sublease was the best option at this time." What happened? Is it okay for me to show the house to other people? Does this mean our verbal agreement is broken? What would you do in this situation?

ETA: Apparently, it's my landlord's fault. He said the new lease was a go last night, and he's reneged tonight. The Tenant is still interested, if I can get the landlord to come around on some things. How do I find a subtenant if my landlord is going to be all fishy????


ALSO! How do I keep showing the house? If I show it, and someone else wants it, how do I not feel bad when choosing who gets it? Who gets it? the tenant who wants it, no questions asked, or the one who wants it, if a few things are fixed by the landlord who's feeling lazy?

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