MY FRIEND BROUGHT A CAR FROM A PRIVATE SELLER IN ATLANTA AND IT HAD A "COURT ORDER TITLE" DUE TO A STATE?

TAKING OVER THE CAR FROM A PREVIOUS OWNER. MY BUDDY LIVES IN N.Y AND HAS IT REGISTERED UNDER HIS NAME WITH NO PROBLEM. THEN A WEEK LATER HE TAKES IT TO A MERCEDES DEALERSHIP FOR A CHECK UP AND THEY STATE TO HIM THAT A RED FLAG HAS CAME UP AND HE NEEDS TO CONTACT THE FINANCE DEPARTMENT. WHEN HE CALLS THEM THEY SAY THEY OWN THE THE CAR AND HAVE THE TITLE CAUSE THEY ARE THE LIEN HOLDER ON IT AND DON'T KNOW WHY THEY GOT WIPED OUT EVEN THOUGH MY BUDDY HAS THE TITLE THAT IS REGISTERED UNDER HIS NAME AND CLEAR. CAN SOMEONE HELP!! THANKS,