Well, from what I can tell, I'm the 3rd owner and I did not get a bill of sale and cannot remember the guys name that I purchased the horse from...I know real stupid on my part. 

On one hand, I feel real sorry for the original owner...but on the other hand I fairly and innocently purchased this horse.  Not to mention, I've become really attached and spent time and money on him...feeding him twice a day and putting hours into training him to be a much better horse than he was when I purchased him.  It's a real bummer.

You have no rights other than suing the seller, It's called Receiving Stolen Property...

You could offer to buy the horse from the legitimate owner...

But I think you will be disappointed...

Don't get to bent out of shape about it. Be glad and willing to give the horse back if she is the rightful owner. Think of how you would feel if that had happened to you. That is what can happen if you don't buy a horse with papers.

Saddlebredlover, you've received a lot of accurate information in the answers to your question. If the people claiming the horse can prove ownership, you will have to return it. The person you bought it from was not the legal owner, so your sale with him is invalid. Without any papers and not knowing the seller's name, you have no proof, that you are in fact, the new owner.

You are innocent of any wrong doing, but you will pay the price for someone else's greed. As was stated, your only recourse is to try to sue the person from whom you purchased the horse. Depending on in what state you live, a small claims case will vary in a maximum value, usually somewhere between $2000 and $5000. Your only cost to do so, is a filing fee and a fee for the summons to be hand delivered. You do not need a lawyer, and your fees are returned if you win. It will be up to you to prove that you bought the horse from this person, paid the amount you claim, and had no knowledge that it was stolen. if you loose, you forfeit the filing fee.

A friend of mine went through this same process with a car he bought for his son. There wasn't the emotional attachment you have shared, but it was a rough experience, giving up a complete restoration that involved thousands of dollars and countless hours of labour. The original owner didn't have to, and didn't, pay a dime for the improvements.

Best of luck   Gard

     What breed is the horse?  Does that registery require DNA to be on file?  If it does tell the police you want a DNA test and be prepared to pay for it.  If it's not on file, see if you can contact the owners of the sire and dam and run DNA on all 3 horses.  If the person claiming the horse objects I'd be suspicious since your just trying to verify parentage and by that ownership by proving or disproving the papers. 

     My horses are ApHC and I have DNA on file for all of them even thought they only require it on breeding stock.  I figured it would be easier to prove ownership than just having pictures.  Appys can be obvious, but how do you tell one bay/palimino/black/grey or solid horse from the next with out detailed pictures and even then how can you prove they took those pictures while the horse was in their care?

Terri, if the other people have a previous Coggins form, any tattoos, brands or peculiar markings related to this horse will be identified...plus the Vet that did the Coggins may be able to identify the horse...

If this is a valuable horse it may even have been microchipped...

http://www.kernroadvet.com/coggins_information/coggins-worksheet.pdf

If you go to court you might have to provide a bill of sale (you said you did not get one).  Even a signed piece of paper with the price and date does not have to be fancy.  You are more than likely going to chauk this up as experience.  Also be glad that you are the one that found this horse and took it in your care.  You will probably have to give the horse back - the previous owner might become a friend - you already share one thing in common.  If it was me I would be sad but then if the person is not very far away - we might be able to go riding or showing together.  At least they did not find the horse getting ready to be shipped to be slaughtered.   

If it is a solid horse how could the coggins prove anything.  My old mare's coggins papers just say sorrel mare and my old geldings papers say bay QH.  For a year my vet in Tx used a digital camera and took pictures of the horses and that picture was on the coggins, but he said it was to much of a pain and went back to the one where you just drew in the markings. 

Ours are all registered, freezebranded, and microchipped.  The vet has their digital photos that the veterinarian took when getting the coggins.  The brand and microchip numbers are on the coggins and their registration papers.  There are also brand inspection papers.  The worst part of having a horse get stolen is wishing the documentation had been done prior to the horse going missing.  Grade horses that have no markings can still be positively ID'd with brands and chips... best of luck to you in this situation.  You could be compensated for the horse board etc, but the owner also could come back with asking for compensation for the use of the horse... hard to have it both ways.  ...it can all get so sticky, can't it....  hard to guess how a ruling would go in those circumstances......