Never Received SAT for Second Mortgage

[cdwrites]

What is the name of your state?What is the name of your state? New York
A judge settled our suit in 2001. My husband's grandmother sued us. As part of the settlement, we agreed to a second mortgage that would terminate upon her death. We paid the mortgage with interest monthly until she died, which was 1 and a half years later in 2002, upon which payments stopped. We notifed our attorney immediately that she had died and we stopped paying. He sent papers over to the other attorney for the satisfaction before she died. I guess so that she would sign them. She never signed anything and that attorney never sent any papers back to my attorney. Our attorney never notified us of that and we assumed (incorrectly) that everything was fine and that he had the paperwork. We went about our business until Sept. of 2004 when we decided to sell our home and notified our attorney that we were putting our house on the market. He told us about the second mortgage and that it was recorded on the title. I actually had no idea that it would recorded like that. I thought it was private. We are close to closing on our house now but are being held up by these title issues. Our attny contacted a few title companies about it and they are willing to proceed after seeing the paperwork and the death certificate, however our buyers are using a different title co. that is not cooperative. We need to close on our house before we can proceed with the closing of another house we're buying. Any ideas on how to resolve this without going to surrogate's court? My attny seems to have dreaded doing that from the beginning. What's the big deal about going to surrogate's court, other than the time factor which is really a problem for us now?
WE're really getting nervous.

"...Our attny contacted a few title companies about it and they are willing to proceed after seeing the paperwork and the death certificate, however our buyers are using a different title co. that is not cooperative...."

If another title company will insure the buyers without making reference to the deed of trust, then you will have to tell your buyers they need to switch title companies. You may have to pay their cancellation fee if they agree to switch.