How would that be any different than selling a car that you still have financed with any other institution. People do sell cars all the time that there is still a lien against.
If it is on the up and up, you make the offer to pay the $3K, tell her you will meet her at the title loan place so you can get the title free and clear. Now, if she balks, then she is like you said.
I think the point is, she's actually telling folks that $3k is less than payout and they won't be getting a title.
Which is pretty stupid for both parties, but I guess it happens.
