Bought A Car. Now Dealer Tells Me Title Is Tied Up In A Lawsuit And Cannot Be Obtained Until The Case Is Resolved.

Location: Indiana

I bought a care from an Indiana dealer after finding it on the internet. I flew out there to see, drive the car. Dealer had good reviews, I had a car friend look things over and it all seemed to the up and up.

Fast forward a month after purchase and still no word on the title. I can't register the car until I have the title. Finally the car dealer calls me and tells me the title is tied up in a lawsuit.

Now please understand that I am sure I do not have all the details but this is what the dealer told me:

The car was 1 or 20 or so rare cars owned by a single owner who had financed/leased them all though a car leasing company. Somewhere that leasing agency wanted to take back all the cars because of payment issue from the original owner. Somehow, my car got sold. I do not know if it was sold by the original owner, the leaser or someone else. The car went to one dealership, then to a "VIN seller", then to the dealership I bought it from . The dealer I bought it from had no indication there was an issue and everything pointed to the title being "clean". The Carfax was clean and the bank I financed with them is going to pester them weekly about the title so while I am always skeptical, they might be telling the truth here. To them it just seemed that the title was going though the process of going from bank to bank and noting seemed awry until they dug into it after the sale.

Now IN law states I can demand to return the car if I do not get the title but I DO NOT want to return this car. It was great deal and this is a rare care that has appreciated in value even in the 2 months I owned it. Also, its just fun as hell.

So what are my options here? Again, giving back the car is 100% a last resort. Wait out this lawsuit? Get a lawyer to reach out to the original leaser who filed the suit and see if they will release the title? What type of lawyer would cover this? My best guess would be bankruptcy?