Here in MN, you can post a bond that is equal to the value of the vehicle. If you do it pre-restoration, it would be much lower. Post your 3 year bond. If no one files a claim against your title, you get to remove the bond and the title is clear.
The reason the DMV make it so difficult...
1st off, I don't think they deal with old vehicles much...while you would think it is "their job to know"...it is one of those topics that just don't get covered by your local counter person at the DMV...If you talk to the salvage vehicle people, you may get your answer...
2nd..when they do see an old vehicle, they have to treat a basket case 1950 with no title or vin plate the same as a basket case 2005 Mustang with no vin plate or title.....someone out there just might have a legal claim to that vehicle...
But still frustrating as He@!...we all know...