Life just keeps on suckin'

My car broke down and I decided I had had enough of repair bills on the gas-guzzling beast. I sold it to a guy I work with for parts. I signed the title over to him and that was that.... or so I thought.

It turns out that he traded the car to a friend for 2 cars that he hope to rebuild into one good car; the friend repaired my car and sold it to some Mexicans. Today, I received a letter from the Indianapolis police forfeiture office that they had the car in impound and we were the owners listed on the title search; it seems no one bothered to have the title transferred during all this wheeling and dealing.

Does anyone have a clue what my legal responsibilities are? If it is in forfeiture, I am assuming that these Mexicans were arrested with drugs in the car. The big question is whether I have to pay for the tow ans $10/day impound fees or can I just tell 'em to keep it and auction it off to cover the charges?

Anyone.....anyone?

UPDATE: The new owner of the car had contacted the police before we called and all we had to do was make clear that it was no longer our car.

My coworker said that, even if the new owner had not called, we would have simply denied ownership and told them to auction it off.