Legal Question in Real Estate Law in New York

Title Insurance -problem - buyers does not qualify for title insurace

Please help me understand the title insurance problem. We are 10 days away from closing on our new home.My husband and I have a disdcharged BR on our record. Mortagage co has copies of all schedule and details. A judgement for a credit card was filed in city court against us prior to the br, but was included in the BR and discharge. No avoidance was ever filed as this did not involve real proerty. Now the bank lawyers says we cannot get title insurace for closing until this is cleared of the record. I do not understand if this is a debt that cannot be collected on and was discharged, why does this affect title insurace on the new home? seems to me it is a catch 22 and no one can tell us how to resolve this, 10 days and our mortgage comitment expires. PLEASe advise. thank u.


Asked on 8/07/05, 11:40 am

2 Answers from Attorneys

David Slater David P. Slater, Esq.

Re: Title Insurance -problem - buyers does not qualify for title insurace

Call the title company. A certified copy of the discharge in bankruptcy should be sufficient.

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Answered on 8/07/05, 11:51 am
Robert R. Groezinger GroezingerLaw P.C.

Re: Title Insurance -problem - buyers does not qualify for title insurace

It is an issue because it acts a a potential "lien" against the property jeopardizing the position of the lender.

Good Luck

RRG

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Answered on 8/07/05, 11:52 am


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