I purchased a used car from a dealer that is now out of business and in bankrupcy. I come to find out that this dealer is a crook. They sold me a car which I financed through a credit union. I find out now that the car was traded in to the dealer and the original loan was never paid off from the first owner. Somehow they continued to make the persons payments until now, they closed shop and screwed people. In MN DMV says dealers are allowed to sell cars with something that is called a conditional title or registration. the car is registered to me but I can never get the title. Can the original owner take the car back or can the original owners bank repo the car? How were they able to sell the vehicle to me without paying off existing loan? Doesn't my credit union have to have proof that they are in first position on the title?