What is the name of your state (only U.S. law)? OR
We are looking for a couple of simple answers on a question of our liability with respect to a boat that we sold. Here are the basic facts:
The purchase was on a secured loan installment contract. We understood that the boat was to be held as collateral at the time of the contract. The titles for both the boat and the trailer however were delivered to us free of any indication of a lienholder. It was our understanding that although we are still fully on the hook for the balance of the contract, under Oregon law, failing to perfect the title in a timely manner provided us the right to reconvey that title upon sale. As such, we sold the boat two years later, and it has now been another 2-1/2 years since the sale. We have continued to make our regular payments on the loan in an effort to pay it off.
It is our understanding that title transferred successfully and the buyer has not experienced any issues or question over the title. However, we have only recently discovered that under chapter 79 of the UCC for Oregon, there is a lien filed presumeably against the boat, and clearly in my name.
So our questions are:
1) If we default on the loan, can the financing company reposess or otherwise encumber the buyer's ability to sell the boat later on?
2) Were our actions likely to be considered as fraud despite our misunderstanding of liens and clear intent to pay off the loan in good faith?
We ultimately will get an attorney involved as we go forward with a potential bankruptcy filing later this year and are not interested in a discussion of whether that debt will be discharged or not. We are very stressed out over this issue and cannot afford to consult an attorney at this time. We merely wish to gain a better understanding of where we likely stand on this issue.
Any questions?
Thanks so much in advance!
We are looking for a couple of simple answers on a question of our liability with respect to a boat that we sold. Here are the basic facts:
The purchase was on a secured loan installment contract. We understood that the boat was to be held as collateral at the time of the contract. The titles for both the boat and the trailer however were delivered to us free of any indication of a lienholder. It was our understanding that although we are still fully on the hook for the balance of the contract, under Oregon law, failing to perfect the title in a timely manner provided us the right to reconvey that title upon sale. As such, we sold the boat two years later, and it has now been another 2-1/2 years since the sale. We have continued to make our regular payments on the loan in an effort to pay it off.
It is our understanding that title transferred successfully and the buyer has not experienced any issues or question over the title. However, we have only recently discovered that under chapter 79 of the UCC for Oregon, there is a lien filed presumeably against the boat, and clearly in my name.
So our questions are:
1) If we default on the loan, can the financing company reposess or otherwise encumber the buyer's ability to sell the boat later on?
2) Were our actions likely to be considered as fraud despite our misunderstanding of liens and clear intent to pay off the loan in good faith?
We ultimately will get an attorney involved as we go forward with a potential bankruptcy filing later this year and are not interested in a discussion of whether that debt will be discharged or not. We are very stressed out over this issue and cannot afford to consult an attorney at this time. We merely wish to gain a better understanding of where we likely stand on this issue.
Any questions?
Thanks so much in advance!