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Buying equipment at tax foreclosure auction

Posted: Sun Jun 28, 2020 12:32 pm
by cowboy43
In Texas when buying trucks or equipment at a tax foreclosure sale, how does one know that it is not a first lien on item. When buying property. One can research at the county clerk office, but not knowing anything about the truck or equipment or where it was bought or if someone has first lien on it. How do you research before the auction. I know when buying property it is the buyers responeability to research for a clean title but trucks and equipment might hard to research. I was asked this question an I could not give an answer. :?:

Re: Buying equipment at tax foreclosure auction

Posted: Sun Jun 28, 2020 12:47 pm
by JMJ Farms
I’m not sure about Texas but in Georgia a lender files a UCC on personal property if the borrowers hocks it. I’m 99% sure it’s file with the Clerk if Superior Court in said county.

Re: Buying equipment at tax foreclosure auction

Posted: Tue Jun 30, 2020 4:34 am
by Lucky
I know a man who got into a deal like this. Luckily by the time the equipment was found by the lender the banker holding the lean told him to just keep the equipment. I’m guessing most farm equipment doesn’t have a title and isn’t registered anywhere so it’s nearly impossible to find. Of course a truck or trailer would be pretty easy to locate if you ever registered them.

Re: Buying equipment at tax foreclosure auction

Posted: Tue Jun 30, 2020 5:11 pm
by TexasBred
cowboy43 wrote:
Sun Jun 28, 2020 12:32 pm
In Texas when buying trucks or equipment at a tax foreclosure sale, how does one know that it is not a first lien on item. When buying property. One can research at the county clerk office, but not knowing anything about the truck or equipment or where it was bought or if someone has first lien on it. How do you research before the auction. I know when buying property it is the buyers responeability to research for a clean title but trucks and equipment might hard to research. I was asked this question an I could not give an answer. :?:
Find out who actually put the equipment up for sale. First lienholder should be the seller.

Re: Buying equipment at tax foreclosure auction

Posted: Tue Jun 30, 2020 10:29 pm
by BRYANT
I know a man in Okla. that bought a dozer and it had a lien on it and cost him some money. I also know two men that bought cattle that a bank had a lien on , big messy court case