Personal lien against a person

[Jeremy Anan]

Hello BP - 

I have a friend who's considering real estate investment but has a lingering concern. Back in 2007-2008, he took a business loan of $100,000 for a restaurant venture that unfortunately failed. As a result, the bank placed a lien on his personal name, which remains active and tied up in court. Surprisingly, this lien doesn't appear on his credit report. He didn't file for bankruptcy.

Now, he's contemplating investing in real estate but worries about how this existing lien might impact his chances of securing a loan for such investments.

Could anyone shed light on how this historical lien, even though not visible on credit reports, might affect his eligibility for real estate investment loans? What steps could he take to improve his prospects or navigate this issue effectively?

Any insights or experiences shared would be immensely appreciated. 

Best regards,

[Sam Bagwell]

I agree with @Tom Gimer ; check 7 + 3 years in Georgia.  If the lien/judgment is still "live" then it will automatically attach to any real property he acquires.  A lender would likely not agree to be in second position, and so would be unwilling to lend unless/until it is cleared.  I am a real estate litigation attorney in Georgia.  I'm not your attorney.