Selling stolen item in Oblivion Remastered
You might need to sell those stolen goods but you cannot do that at normal merchants.
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Finding fences: the black market
Instead, you will need to find the fence, and there is only one place like that, unless you join the Thieves Guild.
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The fence is located at the Inn of Ill Omen on the road between the Imperial City and Bravil. His gold is limited to 50 pieces, so you might consider the path of the Thieves Guild instead.
After selling the item you can buy it back so that it does not have the "stolen" flag anymore, if you wish.
Here is the exact location on the map:

If you join the Thieves Guild, you will be able to sell your stolen goods at Ongar the World-Weary in Bruma and you can access other fences by asking Armand Christophe, in the Garden of Dareloth in the Imperial City Waterfront at midnight, the list of all fences you are allowed to visit.
Clearing the stolen flag with enchantments
There is an alternative way to remove the "Stolen" status from something you've stolen, that requires you to enchant the item. The act of enchanting essentially creates a brand new version of the item, which loses the "Stolen" marker.
Here's how you do it:
- Go to Frostcrag Spire: This wizard tower is located high in the mountains to the east of Bruma. If you've heard any whispers about it in Bruma, it should appear on your map, making the journey easier
- Find the Enchanting Altar: Once you're inside the main level of Frostcrag Spire, you'll find the Altar of Enchanting at the far end of the room
- Get Magetallow Candles: To use the altar, you'll need special candles called Magetallow Candles. You can buy these from Aurelinwae, who runs the Mystic Emporium in the Imperial City's Market District.
- Activate the Altar: Once you have the candles, return to Frostcrag Spire and activate the Enchanting Altar
- Enchant your item: The altar will allow you to select the "Stolen" item you want to work with and apply magical enchantments to it. Choose the effects you desire.
- Finalize the Enchantment: After you've selected your enchantments, finalize the process. This will create a new, enchanted version of your item, and this new item will no longer be marked as "Stolen."
So, by taking your "borrowed" item to Frostcrag Spire and enchanting it, you essentially magically launder its status!
Conclusions
As you can see, you have multiple options: just find the fence, join the thieves guild, or enchant your items!
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