Anyone familiar with this bike and/or it's owner?

http://denver.craigslist.org/mcy/415822011.html

He had previously posted as parting out and I was going to meet him tomorrow to buy some parts. This ad has me a bit worried though. If you owe on a bike, and are using it as collateral, can you legally part it out? I would think that you sure as hell couldn't sell it without paying off the loan.

Not sure what to do now.....