First let me introduce myself.  I am 42 and live in N.E. WI and love working on anything with a motor.  My son recently got me re-interested in bikes with his purchase of a Buell Blast.  In perusing​ the eBay store of a local charity that sells donated vehicles to help fund the organization, I found an 06 S40 in need of TLC with an unknown title history.  Long story short I bought the bike for $326 with a bill of sale only.  The paperwork I received says the title status is junk parts only.
 I spent the day today looking it over changed the oil and cleaned the carb. Dumped a little gas in it and with a loaner battery from my son's bike it fired right up and runs great!  
The question I have now is what do I do next.  I'd really love to get it on the road and use it as a work commuter etc. but the title issue is a problem.  I could part it out and likely get my money back but that's really not me cup of tea.  Another alternative I've been kicking around is finding a donor frame with papers that I could register and switch the major components over.  Looking for some thoughts on the direction I should take.  What do you all think?

In CA if a bike is wrecked , stolen or lien sale it's automatic it will always have what they call a " salvaged title ". If your lucky and it's not from outta state the dmv might inspect it and if your not lucky they will make you take it to CHP for inspection. But I use the smile a lot and be polite and agree a lot technique with the dmv.
I bought a bike from a salvage yard and got a bill of sale. Had a blown engine , rebuilt the engine & cleaned it up , now running and road ready. Found a motorcycle dealer that did state approved brake & lamp inspection, 25 bucks with certificate. Took bill of sale & cert to dmv, filled out 3 forms applying for new pink slip and new registration & new lic plate 75 bucks then they wanted to see the bike (must be on trailer or in pickup)can't ride it there. Still haven't showed her the cert , she fakes knowing what she is looking at and I just smile & be polite & keep agreeing. Now she wants to see all the lights work and now I spring  the brake & lamp cert on her and she says good we can finish this today you don't need to go to CHP now. Some other 38 buck fee or tax so 138 bucks walked out with lic plate , tags , reg. New pink slip was mailed to me. Now the smile is the real deal. But that bikes pink slip will forever say "Salvaged" affects resale value and scares away buyers,but I don't care cause I'm riding it. 3 years later sold it at market value !!!

Go to your DMV, tell them the story, and see what they say.  I bought a bike with a Salvage title that was a theft recovery, and it does have the potential to reduce the resale value - but who cares with a $ 326 purchase price.

If you aren't lucky getting the title agency in your state to cooperate, there are title service agencies that can get you an out of state title......I believe Vermont is the easiest to get a title from...they charge a fee that is more than you paid for the bike but it still will be a good investment as the bike will be legal for road use.  You can try the Vermont title process by yourself and some have reported good success.  Or.....you can shop around for a title frame and do a frame swap.

Yeah but shipping motorcycle frames isn't cheap $$$

Looks fairly straightforward according to the Wis DOT site. And even if there had been a salvage title, it appears that unlike some states, the vehicle can be returned to service. It might be dependent on knowing that the bike was in fact donated to the not-for-profit from which you purchased it, and there's little chance the original title holder would attempt to recover it from you while under the bond. A guy over on the Honda Twin site went through the process with no problem.

http://wisconsindot.gov/Pages/dmv/vehicles/title-plates/surety-bond.aspx
http://wisconsindot.gov/Pages/safety/veh-inspect/salvage-veh/default.aspx

Bob
Thanks for the info, I will check into that.  I am sure the bike was donated.  They have been operating since 1965 and would definitely have turned it away if they were wary of the status.  I will have to get more information.