That's my personal opinion. Someone that's in the public eye or depends on a favorable public opinion to make a living (artists have to sell their work after all) doesn't seem like a likely candidate to be a professional scam artist. My money is on the scenario where she uses the money to pay off the loan, then never finishes up the paperwork with DMV to get you the title. I know in Virginia there's not a physical title for a vehicle until after its initially paid off, at which point the bank/credit union "releases" the title in the DMV database to reassign to the new owner. What's interesting is that you never actually have to go get a physical title from DMV unless you want to sell it. If this is what's happened, the TX DMV is probably sitting on a title that was released by her bank but never received by her. I know contacting the DMV could be risky, but personally I would do it - they are the sole authority on this mess. I would just call them on the phone and explain everything that's happened and see what they think. But don't give them your real name (anybody has a right to call their DMV to get info about a VIN without having to provide personal info) for the reasons that have been listed elsewhere in this thread.
Too bad the guy that sold us Sonya's Honda isn't in prison. He was buying frame-damaged cars on eBay but only after ensuring that the CarFax report didn't show the damage. Then he would stick the report in the window of the car and park it on the "lemon lot" on base, where he (as an O-4) could swindle unsuspecting E-1/2/3's out of their already minimal pay. I would LOVE to see that guy go to jail, unfortunately we had Mahalia in the NICU at the time, so we didn't have the energy to really pursue it.
Good luck man, it doesn't look good, but hopefully there's a happy ending around the corner.