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I bought a "turn=key" RCFE in 2004 for $100K, but when I closed on the underlying real estate (now upside down

I financed the purchase of the real estate from them, but there was no business conveyed, and when I tried to sue, they said they didn't sign the business contract. But they did take the money for years! My attorney was incompetent and the Saturday before the Monday court date called me frantic that I should drop the suit. Still, nothing given for the lien, but 8 years later, they now want to foreclose. The property is 50% over encumbered due to lost value. Please advise. Thank you.

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The BAF Group LLC

You do not say where you are located, but in Maryland for example, if it is not in writing, there is nothing promised. (I am a Broker, not an Attorney. But this is what is hammered into us with the Contract Law with which we operate.) This is to say, what were you given when you looked at and then bought the business? Was business promised? Were there numbers provided? Was the business fraudulently offered? Did your Attorney or Accountant review any historical business and offer counsel on your purchase? None of this is clear from your description.

If you bought a turnkey facility and at that time there was no current business and no representation that there was business, you may not have any reason to sue. A lot of people took it on the chin, because of the erosion of Real Estate values, and the Sellers cannot be held responsible for a National economic decline. But if there was reason to believe that there was business that was represented, which later turned out to be fraudulent, then I would see another Attorney, quickly. The fact that they did not sign a "business contract" may or may not be significant, if their prior communications painted a picture of a successful business in operation. Hopefully, you will have saved every piece of paper from that era to use in exploring this with an Attorney.

Aug 14, 2012

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