John,
You can and should apply for a replacement title. Obviously, you'll require
some form of proof that the vehicle was purchased from the rightful owner (ask
a notary or the local DMV, triple A, etc.) You don't say what state (or
province) you're in, but the law will vary from state to state.
You don't want a salvage title. That's for vehicles that have been declared
total losses for insurance purposes, et al. It will diminish the value of the
car, since subsequent owners will never really know why it was salvaged.
Good luck!!
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