I recently purchased a motorcycle that i later found out had been defaulted on a little over two years ago. The bike was never found though ...

Question

I recently purchased a motorcycle that i later found out had been defaulted on a little over two years ago. The bike was never found though it was up for reposession. The original owner then sold the motorcycle. From that point i purchased the motorcycle. I would like to have the motorcycle tagged and insured in my name but am uncertain as to whether i am in posession of stolen property or if the loan company simply had insurance pay them off and is no longer searching for it. I did not find out about any of this until a little bit after purchasing the bike. The payment for the bike was a trade if that makes any difference.

Answer

I think it depends on whether there was a lien recorded on the title. If not, then I think your trade would make you a bona fide buyer. However, if there was a recorded lien and you just didn't check, I think the bank would still have a claim to the bike.