I've sold cars privately before, but never one I had a balance on. I
owe 13k and expect to only get about 11k. Do I call the bank, get the
payoff amt and send in my 2k with the buyers 11k? Does the buyer send
in the money? Is the Bill of Sale we sign sufficient? Is more
paperwork needed? Can the buyer register the car without the title? If
no, then do we just wait until I get the title in-hand to make the
transfer? I don't want someone driving a car registerd to me. Note: My
bank (not local) has the actual title. Do they send the title directly
to the buyer or to me?

Essentially, I want to have the procedure down so I can make this a
smooth sale for me and the buyer. Thanks in advance.

To get the title, which you'll need to give to the buyer upon sale,
you will have to payoff the balance of your loan.  Your bank does not
deal with the buyer.  You either have to find a way to come up with
the money to pay off the loan before the sale, or the buyer would have
to trust you and be willing to pay for the car before he is able to
actually take possession.

Perhaps if your bank offers an escrow service it might be a solution.