Sounds shady as **** to me. If it was a default it should have gone to auction and would still have title.
Banks want nothing to do with repo on stuff like this. My brother went bankrupt on his sled, the bank told him it's not worth coming and getting the boat and he needed to take it to the auction for them. He told them come and get it it's sitting outside. We have been licensing and using it for the last 5 years with no issues since it's licensed in his wife's name he just can't sell it without paying off the lean.
But yes this sounds shady to me, especially withe the come and get it immediately or else attitude.