I might be a good idea to get a hold of the person whos name is on the title, explain the situation to them and see if they are willing to sign an affidavit to the effect it had the wrong name entered as buyer ant then you can put it in your name.
This is the best route.... Not sure of other reply's but until the Title is in your name and free and clear the car is not yours plain and simple. A court of law won't accept ignorance on your part so I would not put a dime in the car until you have legal ownership of it......
Here is my thoughts. A Body's are great but you don't have a 67 Fastback Mustang in this discussion and hopefully the owner will hear your story, understand the situation, and proceed with getting you the title so you can do whatever you want with the car.