My question involves vehicle registration or title in the state of: colorado

Vehicle was towed as "abandoned" from a private lot. It was registered in another state. We called the tow company and they said it would be a huge dollar amt to get the car out. We told them we had to get the money together - this would take awhile. They didn't give us a time frame or take contact info. We called 2 months later to get a dollar total and, of course, owed huge dollars. We told them again, we are getting the money together and would be in to get the car when we had it. We were not told anything about a time limit or asked for contact info. We went in today to get the car. It had been sold. They sent a certified letter to the address on the reg - the mail forward had expired and someone at the old address signed for the letter. NOT a registered owner. There was also a lienholder listed on the reg, the tow co said they sent a certified letter to them and got no response. We called the lienholder (a major company) and they had no record of receiving anything on the vehicle.

Did they cover themselves with one signature that did not belong to a registered owner? Was this a legal sale? I don't know the necessary steps they had to take to sell it legally. Wouldn't they have to get a response from the lienholder, at least?

This car belongs to a wounded vet and his 4 month pregnant wife. My kids. I am furious as this sounds VERY shady to me. They had just moved out here when he was medically retired from the service. If this company operated in a legit manner, fine, but it doesn't sound that way to me. HELP!!