PPL is essentially a consignment dealer on this one, a good go between, but was the unit involved in a repo? From what little is written, it doesn't sound like it. Sounds like any other dealer doing a consignment.
I know everyone likes to think of buying from a dealer and a salesman is awful, ciz we all lie, and all that BS, but consider your deal, no warranty on a consignment, the short sale, no guarantee of a title, a private sale, no warranty, and you want to hear lies and half truths?!> Try buying from someone that is upside down and HAS to sell it.
Good luck with the short sale/repo/ whatever. Once it gets to the bank there may be a brother in law of a lending officer that wants it. I have friends that bought a nice Monaco Exec from a bank/repo, took them months to get it. And no warranty. Don't forget, people that can't make payments do not do maintenance either!