Can a Car Be Repossessed if the Buyer Got a Clean Title, Unaware of Loan

[camay2010]

My question involves an auto loan or repossession in the State of: IL
Please do not judge me for my stupid mistakes; I am already paying for them.

1. I bought a car from a later turn to be suspicious person.
2. The clean duplicate title for the transaction was under the name of another person
3. I went to my police department to verify the car was not stolen or involved in any illegal action. Police checked out and said it was OK.
4. I purchased the Car Report of the vehicle and it shows there is a “loan/lien” on the same date the duplicate title was issued.
5. I tried to contact the former owner at the address shown in the title and insurance card to verify if there was a loan or illegal issue but a person living there denied any knowledge about this person or the vehicle. I did not insist to prevent any harassment complaint.
6. I went to the DMV to verify the status of the car and they said “there is not a lien or any problem with the car, just wait 3-4 weeks for the New Original Clean Title under your name”. After three weeks I received the original clean title already under my name.
7. The DMV on its web site never showed or actually shows any lien for this car.
8. I do not know the company reporting the loan and the Car Report Company cannot give it to me due to privacy policies.
9. I am trying to avoid any legal or personal confrontation with the seller and the former owner but still I fear I could be a victim of a “buy nothing fraud”.

Questions;
So far I am the legal owner with an original clean title but If there is a not reported lien to the DMV and that there is a pending loan with the former owner;

1. Can the lending company repossess the car with a clean title now under my name?
2. Does the lending company have any right to repossess since they did not report on time the loan/lien to DMV and the loan is not under my name?
3. Does the lending company have a time limit to report a lien to DMV and execute a repossession?
4. If there should be any loan and they try to repossess my car, can I negotiate the balance since it could be worth still paying for it? Another “Cash for Title” Company said they would not lend more than 2k for this car.
5. If I sell the car with the new title under my name what could be my responsibilities if there is a loan/lien problem in the future with the next owner(s)?

Thanks for your comments and advice.

This time,
Stupid camay2010

[Mr. Knowitall]

You purchased a car based upon a duplicate title from a person who was not the owner, and never met the actual owner. Who signed the title to convey the car to you?

[camay2010]

Hi, thank you for your anwer, I really needed it. Yes, that was one of the many mistakes I did. The person in the curency exchange verified the title was ok, with no liens and previously signed by the original owner and not the person who conveyed the car to me, he said he was selling it on behalf of his friend, I paid cash, without a bill of sales or anything else; As I mentioned, three weeks ago I received a new original clean title under my name from DMV but the Car Report Company shows a "Loan/Lien" on the same date the duplicate title was issued some months ago. The point is that if there was a loan against this car, the lending company probably did not report it to the DMV and that is why I have the new clean title; so the question is: Does the lending company have any right to repossess my car, with the new title under my name?, or charge me with the loan if there was any and they did not pay it? and what happens if I sell or trade in this car. Will I be liable with the next owner(s) if there is a repo or anything in the future?; Does the lender lose any right for repo by not reporting the loan/lien in time to DMV or not reporting it at all?