Depending on your state, the DMV can be compelled by a judge to issue a new/correct title no matter what DMV says. In PA (and I'm sure other states) the title is not proof of ownership. Really, its not. Bill of sale is. Titles are only for asset tracking via title ID number.
No/bad titles are a very common issue (many states didn't require a title until the 1980's) because the 'pink slip' (aka the pink copy of a salesman pad) was enough to show ownership.
Anyway, google it. In PA you file a claim with a judge in court, advertise in a newspaper, and if no one can contest you facts, then judge will issue an order to compel the DMV to issue a title. Happens quite often.
