Legal Question in Real Estate Law in New York
I am facing foreclosure and am looking to engage in a deed-in-lie or short sale. However, recently my property pretty much burned to the ground and has now been condemned making short sale nearly impossible. The fire report stated that my neighbor was responsible for the fire. Is it possible for me to transfer to the bank my right to sue this neighbor. So I would give the bank a deed-in-lieu plus this right for them to sue the bank and collect as part of this package. If this is a possibility, does my lawyer need to file this claim before I can pass it on to my lending bank along with the deed-in-lieu?
3 Answers from Attorneys
You need to file an insurance claim against your policy and your neighbor's policy.
It's possible, but I have yet to see a bank do this. Best course of action would be to file your claims now, and attempt to stall the foreclosure during the claim's pendency. Also, have you attempted to sell the property?
Dave
http://nylegaladvisor.com
If you had a proper fire insurance policy it would have named your bank as an addtl insured for at least the amount of the mortgage. Banks usually require this for as long as there is a mortgage.
The mortgage should be paid off directly by the insurance company so do not give them the house too. Make sure you file the claims ASAP. Some policies require notification w/i 30 days.
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