I purchased a boat slip for 20,000. I have my cancelled check from the seller. The seller secured a loan using my paid slip as collateral. A UCC was filed because the guy defaulted on the loan and now I find out my slip has gone into foreclosure.

Is this fraud and if so, what is my recourse?

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    Was the loan/collateral put in place before you bought it, or after? IANAL, but my gut feeling is that if it was already in place, that could be fraud between seller and you (and/or, conceivably, you were "careless" not to check there wasn't a lien in place). If the loan was obtained after you bought it, that feels like the lender should have no claim over you, since the slip was not the seller's to pledge as collateral (any fraud would be between seller and lender). – TripeHound Feb 21 at 7:52
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    Who is the seller?Are they a company that owns many boat slips, or are they a person who said they no llonger needed the slip. Are slips in the marina normally bought and sold, or are they rented/leased? – mhoran_psprep Feb 21 at 11:59
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    What is UCC in this context? – yoozer8 Feb 21 at 14:18
  • @yoozer8 en.wikipedia.org/wiki/UCC-1_financing_statement Registers the creditors (potential) claim over another's property. – TripeHound Feb 22 at 8:37

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