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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I bought a used boat, 40,000.00 . Put 3 thousand down and bank

Customer Question

I bought a used boat, 40,000.00 . Put 3 thousand down and bank loan for 37K. Bank performed title search and came back clean. Purchased boat and found out 6 months later that boat papers were forged, boat was stolen and seller was arrested and charged. He admitted guilt and is awaiting trial. Question... Are we responsible to the bank to continue paying loan, which we have been. It was their fault for coming back with clean title which then made us purchased the boat. Or are we stuck paying this off forever.Do we have any legal recourse
Submitted: 2 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns. I am so very sorry to hear that you find yourself in this situation. The information I will provide will likely not be favorable as well, so I ask that you do not blame the messenger. In a situation where you mistakenly purchase or finance a stolen item, be it a boat, vehicle, jewelry, and so forth, the risk of loss is on you and not the creditor. That means that if the item is found to be stolen, the item is taken away from you and returned to the rightful owner, and you remain responsible for the debt. Now, you CAN sue the seller for your losses and damages, but ultimately the creditor here is as much of a victim as you--therefore they do not absorb the loss because the person who ultimately chose to purchase (and finance) the item was you, and not the creditor. Now, you can likewise argue, if you have proof, that they breached their duty by failing to find out that the item was stolen. However, you would have to then prove that they failed to exercise a proper duty of care and that others would have been able to find out about the theft. So if they did not run a good title check, you can sue them for losses and argue that the loss is on them, but if title did not show theft, they are not liable..but you are. I am sorry! Sincerely, ***** *****