That's funny. I mean, as a third party it's funny.
"It's only funny if it's not happening to you."
That said, The bank really ownes your car unless you pay cash. Shouldn't THEY be the ones filing for the lost title? If I were you I'd start making phone calls. I used to work at a smallish bank (150 emp, 10 branches) and all it really took was to start making calls up the chain. It was easy to get ahold of the CEO/President, and he would listen and go ask people what was up.