Liens on equipment??

Eldon (WA) · Mar 20, 2018

I posted about a neighbor whose husband died about 6 weeks ago...this week a friend said she was now selling things to try to ward off foreclosure. I went and made an offer on a number of items, close to $14k worth. She accepted my offer on a decent IH 480 disk, so I bought that home today. She was a little hesitant on giving me a receipt for it...got me to wondering if there might be a lien on some of this stuff. Is there a way to check on this? I'd hate to have the sheriff come by and tell me it wasn't her's to sell....

47fivewindow · Mar 20, 2018

I would guess she just doesn't want to have to explain it as income.

JD Seller · Mar 20, 2018

In most states you can check UCC filings electronically. It is at the state level now by Federal law. I have checked on things I have looked at or even bought.

Here is the site for Washington state.

https://fortress.wa.gov/dol/ucc/

You will need to look for two things:

1)First is a blanket lean. If there is one of these on the equipment ALL the equipment is mortgaged. These are common for operating type of loans. So the bank is mortgaging all of that person's equipment until the loan amount is paid off.

2) Specific equipment UCC filings. These would be more common for financing New equipment. So you buy a new combine and finance it at JD or CNH there would be a UCC filing listing just that piece of equipment.
WA site to search for UCC filings

LA in WI · Mar 20, 2018

Just go to your country courthouse and to the office of the country clerk. They will gladly help you where to look. By law liens are considered public information.
LA in WI

Eldon (WA) · Mar 20, 2018

(quoted from post at 20:57:46 03/20/18) In most states you can check UCC filings electronically. It is at the state level now by Federal law. I have checked on things I have looked at or even bought.

Here is the site for Washington state.

https://fortress.wa.gov/dol/ucc/

You will need to look for two things:

1)First is a blanket lean. If there is one of these on the equipment ALL the equipment is mortgaged. These are common for operating type of loans. So the bank is mortgaging all of that person's equipment until the loan amount is paid off.

2) Specific equipment UCC filings. These would be more common for financing New equipment. So you buy a new combine and finance it at JD or CNH there would be a UCC filing listing just that piece of equipment.
WA site to search for UCC filings

Thanks, learned something new tonight. Can't find anything under their name or business name, so should be ok

Check Break · Mar 20, 2018

(quoted from post at 20:57:46 03/20/18) In most states you can check UCC filings electronically. It is at the state level now by Federal law. I have checked on things I have looked at or even bought.

Here is the site for Washington state.

https://fortress.wa.gov/dol/ucc/

You will need to look for two things:

1)First is a blanket lean. If there is one of these on the equipment ALL the equipment is mortgaged. These are common for operating type of loans. So the bank is mortgaging all of that person's equipment until the loan amount is paid off.

2) Specific equipment UCC filings. These would be more common for financing New equipment. So you buy a new combine and finance it at JD or CNH there would be a UCC filing listing just that piece of equipment.
WA site to search for UCC filings

X2. Search for the UCC-1 at the link provided. Search both individual's names and any business name you know of.

JOCCO · Mar 21, 2018

Ucc replies are correct. But she might have
probate issues. This would be like your
sister dying and you start selling her
stuff. Maybe you are not the
representative. Also in my state lies can
be a pain on older stuff.

Butch(OH) · Mar 21, 2018

I dont know how to check on that Eldon but I do know it is a concern. Quite a few years ago a neighbor bought a feed grinder at a consignment auction and 2 months later JD credit came with a deputy sheriff and offered him the option of paying off the lien or they would haul it away. The lien was more than the grinder was worth and he lost it and his money. I have heard hear say of it happening other times but that incident was personally witnessed. Frankly I am surprised that it doesn't happen more often.

showcrop · Mar 21, 2018

It is something to be careful of. My neighbors had pretty much everything on their farm listed as collateral for loans from FSA or one of those organizations. There was even one piece that they bought from another neighbor's business and never finished paying for.

rrlund · Mar 21, 2018

Yep,back in the 80s farm crisis,the jockeys around here wouldn't buy anything until they checked with the clerk's office.

dhermesc · Mar 21, 2018

Looks like your neighbor has a claim against the consignment auction. That's who he paid - they owe him his money back. If they want to collect they go after the former owner - not your neighbor.

tomtinker · Mar 21, 2018

If it doesn't have a serial number, if anyone asks just say they made a bunch of those that year.

SweetFeet · Mar 21, 2018

I agree with the possibility of either a lien or a probate/estate issue...

When FIL died, my MIL had to have EVERYTHING assessed for it's value: all equipment, farmland, building site -- this is so the gubermint can make the widow/widower pay the proper amount of death tax. (Total bull-oney)

Traditional Farmer · Mar 21, 2018

Pretty sure the Federal Death Tax has been abolished.State of Virginia still has a probate tax where all personal property is taxed but the wife doesn't have to pay as she is considered co owner.

DoubleO7 · Mar 21, 2018

(quoted from post at 08:39:53 03/21/18) Looks like your neighbor has a claim against the consignment auction. That's who he paid - they owe him his money back. If they want to collect they go after the former owner - not your neighbor.

The former owner who sold it could also be charged with theft or conversion, etc.

Leroy · Mar 21, 2018

That has to go thru probate and that cannot be done in 6 weeks and I don't think forclousur can be done while things are in probate. While in probate she would have to get judge handling the estate to give her a release on selling an item and paperwork would have to go back to the judge. Find out who is handling the settling of the estate and talk to them befor you do anything more.

Butch(OH) · Mar 21, 2018

You are almost right, when a debt is owed they go after the owner first but they will go after the asset if need be. I dont know every detail but I do know he chased after his money or getting the grinder back for quite some time. He had legal counsel and they had no case against the auction company or JD who had a legal lien. As I remember the grinder was considered stolen when it was taken to the sale and sold without JD consent. JD first went after the owner who had nothing and was protected so they went after the asset. Like any other similar stolen goods case the poor guy who unknowingly buys the goods gets stuck.

Wanted to add that I am not bashing JD here in any way, actually they did my neighbor as right as they could offering him the grinder for a very deep discount from its actual worth but he stood firm on the moral grounds that he had paid for it once and was not going to pay again.

WGM · Mar 21, 2018

This happened to my brother a few years ago. Neighbor passed away and brother bought his backhoe from his widow. Two days later the
county sheriff and the actual owner pulled into the yard and took posession of the backhoe. Seem it was stolen many years ago and somehow
the neighbor wound up with it. The sheriff was watching it for a long time waiting for the opportunity to seize it. The sheriff was very
sympathetic to my brother and helped him get his money back from the woman.

dhermesc · Mar 21, 2018

I agree John Deere goes to him to get their property back and he has no recourse against them. But the buyer goes after the auctioneer that conducted the consignment auction. They are the ones who sold the property - that's who he made the check out to, they were the ones representing a legal transfer of property.

My younger brother had something similar happen at a sale barn. He bought 30 head of cattle and brought them home. A couple weeks later the sheriff showed up at his house because it was determined that cattle were stolen and the thief arrested. They traced the cattle to him. He gave the cows up and then had a talk with the auctioneer - who first tried to say it wasn't his fault the cattle were stolen and it was my brother's tough luck. Then the lawyers got involved and the sale barn cut him a check for the amount of purchase. The sale barn can go after the thief (most likely nothing there) for their money but they can't sell stolen property and be paid for stolen property and then say they have no liability.

JD Seller · Mar 21, 2018

dhermesc Your mixing apples and oranges. Livestock and equipment are handled differently in many states. In most mid-west state you have protection that involvers a state indemnity fund that deals with livestock. There is nothing like that for equipment.

Also the responsibility of the auctioneer varies widely from state to state too. In Ohio you can go after the auctioneer. In Iowa you can not unless he Knowingly sold the item.

Liens on equipment??

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