We are in the middle of a short sale, and just received an email from the listing agent. Apparently, one of the owners has already passed away, but still have an open Abstract of Judgment (AJ) against her. First lien holder would not agree to pay, and they can't get in touch with the creditor for the AJ, so they are asking us what to do.

I did a bit court research, and found that the Satisfaction of the Judgment has already been filed for this case. HOWEVER, I found another Civil case against the same person (deceased owner) with judgment against her, not yet satisfied, but no evidence of filing of a Abstract of Judgment.

I emailed back my findings, and the listing agent was appreciative that we found the judgment they are struggling with is no longer an issue. With regards to the other case, he is not concerned, since it didn't show up in the title search.

Should we be worried about this other case, which the creditor won the case (warrant of debt) against deceased owner, however didn't file an AJ. I have heard that unless they file AJ, the debt does not attach to the Real Property. Somehow, it bothers me.

Will we inherit this lien if we close without any release from the creditor? What about the Title Insurance, will title insurance cover the debt should the creditor come forward?

I hope I am not confusing everybody.

Thank you,

Sophia