QUESTION
What should I do about a judgment on estate property?
Asked on Feb 11th, 2013 on Real Estate - New York
More details to this question:
I am administratrix of my aunt's estate. I need to sell her house, but there is a judgment against it (a bank placed a lien on it for a credit card debt). The estate is virtually bankrupt and doesn't have the resources to pay the debt. A potential buyer will not settle until the judgment is resolved.
4 ANSWERS
I would contact the creditor and advise them that (1) the estate has no liquid assets, and (2) you are a family member seeking to resolve your relative's obligation provided they will consider significantly discounting the amount owed.
You are not required to advise them that you may have plans to sell the property, and I wouldn't volunteer this information. I have had great success in resolving these types of obligations under circumastances such as yours.
By the way, the party to whom you are discussing selling the property will obtain title insurance at closing so they need not be concerned about the judgment, assuming you just want to pay it off at closing and not try to settle it for a smaller amount. I think this is not the best alternative, though it is an option.
If you are not represented, feel free to contact me to discuss this further. I am in NY and Westchester and I have expertise in this area. See my listing below on lawyers.com.
http://www.lawyers.com/all-areas-of-law/new%20york/white-plains/attorneys-and-law-firms.html?s=corey%20rabin&ns=y&st=q&form=LHOM
Answered on Feb 11th, 2013 at 11:34 PM
If the judgment is docketed against the real estate (and it appears from your inquiry that it is), then it must be paid off from the proceeds of sale; the bank or its attorneys need to provide a "pay-off letter" stating the total amount owed and the buyer will need to bring a bank check to pay-off that judgment.
The attorney representing you on the sale should be familiar with this procedure.
Answered on Feb 11th, 2013 at 3:35 PM
Business Law Attorney serving Rochester, NY
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Tully Rinckey, PLLC
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The lien will need to be paid off at the closing and that can be worked out by the attorneys handeling the matter.
Answered on Feb 11th, 2013 at 3:34 PM
Divorce Attorney serving Bayside, NY
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Pollak & Slepian, L.L.P.
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The amount of the judgment will be paid out of the net proceeds of the closing so that you do not have to come up with any money prior thereto. That is the standard procedure
Answered on Feb 11th, 2013 at 3:33 PM