1997 Ford F150 Engine light

ok so its a 6 cyc, 4.2L, 282***KM. Was owned by a major city near me and they took great care of it Im told. Just bought it at auction (500$ :) ), so had it towed home. On the way home when it was being towed on the highway aparently the front made a loud squeaking sound and the front seized. Dont know if that has anything to do with it, could just be because it has not been used alot latly. When I got it home I ran it back and fouth and everything seemed fine.. so I was wondering what the engine problem could be , what a typical problem, and are these problems related. It does have some rust, so that may be a problem..

added a pic,couldnt get the best view...will get a better one tomorrow morning.
(long time luker, first time poster hello, and thanks in advance everyone).

update today, lot more rust then i expected with the frame :( . also muffer has water coming out of it...could be from the snowfall two days ago...but umm yea sort of a depressing day eh lol

You said you towed it home and the front seized ? I " assume " you meant a front wheel seized ? That is likely the front wheel bearings caused by exposure to the incliment weather and products used to de-ice the roads . You said you ran it back and forth once you got it home and it ran fine , then you mention an engine problem ? That is confusing - maybe I'm reading it wrong ? The water coming from the exhaust is likely condensation but could be a sign of a coolant leak ? Does the water have a distinct smell or coloration ? Could you elaborate more on the problems you're having ?

You said you towed it home and the front seized ? I " assume " you meant a front wheel seized ? That is likely the front wheel bearings caused by exposure to the incliment weather and products used to de-ice the roads . You said you ran it back and forth once you got it home and it ran fine , then you mention an engine problem ? That is confusing - maybe I'm reading it wrong ? The water coming from the exhaust is likely condensation but could be a sign of a coolant leak ? Does the water have a distinct smell or coloration ? Could you elaborate more on the problems you're having ?

Front wheel bearings - will check them tomorrow to see if there is any damage/if they are fine from being expoused to the elements

Engine problem is the engine light is on - I figure since Im 18 that if wouldnt be a bad investment to invest in a obd, so tomorrow I am picking up one to figure out why the engine light is on.

Water from exhaust - checked the coolant when running, no problems, also no more water is coming out. No smell of corloration.

The main problem I am having is with he engine light, which I am going to find out what is the problem tomorrow, hopefully. Sorry I did not make it clearer, and thank you for helping out. :)

update- P0171/P0174 OBD-II Trouble codes

oxygen sensor in bank 1 detected a lean condition (too much oxygen in the exhaust). Mass Air Flow Sensor is dirty or faulty. So tomorrow I am going to go clean the sensor and see if it fixes the problem.