I don't know your state's laws, but that doesn't sound right to me. Maybe the cop can get creative and work in gray area, but this isn't consistent with my experience. I think it likely that good title was passed when it was purchased from the pawn shop, and good title doesn't change because of an added tier. I hope like hell this works out for you as it's outrageous that these slime get protection.

I do think there are ways to pursue relief and if you want any help down the road, PM me.