Congratulations, Dinodave
You found the right person, who was able to give clear and correct answers.
In general, a DMV does not want to give a title/registration/ownership-confirmation to a vehicle that might be stolen. If they do make a mistake, and they did not follow procedures, the DMV is at fault and liable for facilitating fraud - they have to pay the aggrieved real owner for the value of the vehicle (if the vehicle subsequently has left that state/country, or cannot be found).
