I just purchased a business 6 months ago, and recently found out that the previous owner had a past (paid) lien against the business in 2003. He told me he NEVER had any liens, judgments, etc. on the business. The contract we signed has some language regarding the business as being "free and clear" of any liens, judgments, encumbrances, etc. I was recently turned down for credit due to the past lien associated with the business, and was told that the lien is a historical part of the business, and cannot be removed, even if there is a change in ownership. This is going to significantly impact my ability to secure funding for my business. My question is... do I have any recourse against the previous owner for falsifying information?

Hello I am not a lawyer but it looks like you may be able to you should consult with a lawyer to see. Also what kind of loan are you looking for I may be able to help you find funding but I need more information to be able to know. contact me.

Please consult an attorney because something in this story does not add up. It sounds like the lien was paid so it should be released and should not matter any more. A lot of companies and individuals have liens and judgments against them and as long as there is a reasonable story and the liens/judgments are satisfied, lenders usually make the loans.

Thank you for your reply. I will contact an attorney, and depending on the outcome... will be able to let you my funding needs.




Thank you LenderBuddy for your reply. I will contact an attorney, and will let you know the outcome.