When you bought it, did you buy from a private individual or a dealer or some other entity?  And did you confirm the seller had already paid off their loan?  I would contact the seller and confirm the loan was paid off (even get proof from them).  If the loan was paid off, the lien should have been removed, and then the title could be transferred to you.

Also see here to gain more insight into liens:

https://www.creditkarma.com/auto/i/lien-on-car

Somehow, somewhere, the lien wasn't released by Subaru, assuming that the vehicle loan was paid off, at some point. You'll have to check with them, and if you know the seller, with them, as well. 

Usually, if there's a lien on the vehicle, the lien holder is listed on the title, and there's no clearing documentation that the lien has been satisfied. (Generally, you get a clear, reissued title from the state when the loan is paid off. The new title is "clean," no lien holder listed. Is that what you have?)

In my state we can’t get a title, even a duplicate if their is a lien holder on it. When lien is satisfied the lienholder mails us the title. Probably just didn’t get released in DMV’s computer. Happens alot in my state. Just call Who they said to and have them release it. I seriously doubt anything is owed on it. 

I am not understanding your question. I would suggest you follow their advice and see if that works.

sounds like a snafu, cant imagine Subaru is owed anything, let us know how it works out

The person at the DMW tells you:

call "Subaru American Credit"

have them fill out the Lien satisfied/legal owner/ title holder release form

So, whats the question? I would trust the DMV in that case...

Try calling Subaru American Credit and see what they have to say.