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You have a few options:
1, call around to bike shops and see if anyone will do the deal. Sometimes you can find a dealer that will charge a flat rate. Basically, they take the bike in like they would a trade, and then sell it to you at the same time. They give you a temp tag and bill of sale and everything, and when the title comes in they finish up the paperwork.
2. Go with what the guy says. You can do what you want here, but I wouldn't pay any money until the bank has the title. I do find it a little fishy that the state hasn't issued a title for a bike purchased in August.
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