Sue the previous owner. You’ll likely get a recission (both parties returned to their state before purchase) if he can prove that he truly had no knowledge of the liens, this is simply negligent misrepresentation. If it’s found that he did have knowledge of it, THEN it’s fraudultent misrep and you can get damages.
Unlike Citystars suggested you CANNOT sue Fulblown, you have only the right to sue the previous owner and you’ve got the bill of sale stating there is no lien, so if he’s smart he will reimburse you before this even gets to a courtroom. Then it will be HIS responsibility to take legal action for not being informed of the lien. The reason you have to do it this way is because this is the way it has to be done. Fulblown is not legally responsible for informing you of the lien, the contract was between you and the seller, not them, they haven’t breached anything with you.
B-Wurm 