Legally, that bike is owned by the financing company and the loan would be listed as "in default". If you sell that bike and give a bill of sale with it, you personally could potentially be charged with numerous felonies since the value of the bike is over $500. I would recommend that you reconsider selling it until you have a title in hand. I know for a fact that the DMV will not let you get a salvage title for the bike unless the insurance company paid the loan off and received the title. They would have to have the salvage title supplied to you. The best thing you could do is have your friend get the title from the financing company. The only real option other than that is sell the bike to someone who already has a valid title and frame for the bike (or they can purchase one of Ebay).

You could part it out on Ebay and make more money than you are currently asking though. :-) That's what I would suggest. Engine should land you some good money by itself. Part out every little thing on it.

I would hate to see you land in jail for writing a bill of sale. But it's your perogative if you choose to do it.