It is well under Blue Book. We are talking $1200 under KBB, $1900 under NADA.

I just caught him in a bind, as whatever reason, he decided to buy a new car w/o selling the old one first, so now he's making two payments and can't keep up with it.

 

if u r going to register in md, maybe a call to dmv in md & nj to see what is the process.
and about lien holder status
some states issue transport tags for out of state buyers some dont.

 

ask him to take out a personal loan. this loan would payoff this car and then recive a title of ownership( not bank owned) then you buy the car with a title. when he gets your money he payes off the new loan. this is the only way i would do it.