Legal Question in Real Estate Law in New York
estate and bank is being sued
If an estate and a new Mortgage bank are being sued from the estate old credit card company from 1996. The estate did not pay the judgement that was on the title at closing because the bank's title company said, it was not owed. Six months after the closing the judgement is now suing the estate and the bank. After, some back forth it is believed that bank is going to pay the suit. However, the estate's new attorney is saying that the estate should pay in addition to what the bank is willing to pay. Because, the attorney feels than the judgement will not come back again after the estate. Should the estate have to additional more money?
1 Answer from Attorneys
Re: estate and bank is being sued
A judgment is only a lien on real estate for 10 years. The judgment is good for 20 years but no longer a lien and therefore the property can be sold without paying it. So Title co was right that it didn't have to be paid at closing but wrong that it was not owed.
The surplus monies received from sale are part of the estate which was required to pay it's debts.
So I do not see why the new bank would be sued or why they would pay any part of the debt. If they are willing that is great. If the creditor is not satisfied with the amount, the estate should pay as well in full satisfaction of debt.
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