Legal Question in Criminal Law in Iowa

What kind of trouble do I face for signing the sellers name to the title of a ve

My grandparents sold me an '85 Toyota Trecel for the verbally agreed price of $1500. The car was registered to my dad's wife in Iowa, & the car sat in Nebraska for 6+ months (it's illegal to register a car in IA & reside it in NE). My dad's wife wrote the bill of sale for $50, gave me the title, & told me I was to sign her signature when I went to register it (she said she didn't know where to sign). I did so, & after 3 weeks the car went out on me. My grandfather & dad told me the car was in great running condition, they both claimed the motor had been rebuilt, & it would get me where I needed to go; I trusted them both of the condition of the car (both have been mechanics all there lives). The value listed @ KellyBlueBook.com is $705 (listing it in 'fair' condition, which is listing it in better conditon that it is). I paid $500 'down', & once it gave out on me, I offered $200 more to keep it, or to give it back & get my $500 back, forgoing the $100 worth of work I have put into it. All offers have been rejected before being heard. I have spoken to the Co Treasurer, Co Attorney, & Capt. of the polic dept & have been told that I have nothing to worry about; it's a civil issue, not a criminal issue. Is the advise I have been give

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