Speak to a consumer rights-debt collection defense lawyer. You may have a lawsuit against them.

From these facts you should win the appeal. Of course, their legal arguments on appeal will need to researched.

If they refuse, your next step is a lawsuit.

Yes you can sue for money damages but you may have to sue for the value of the car as the lien release order would be hard to enforce.

The CC&R probably have no effect on a valid judgement.

Once a judgment was obtained you may not get notice. If you were not served with the lawsuit, look into a motion to set aside the judgment.

No unless you were served a subpoena or order to appear.

She would not have a valid complaint. If she is truthful with the police they will not do anything.

If you did not sign the agreement, your option is to cancel the sale.

A lawsuit is possible but look at the fine print for everything you signed.