Lender sues to void estate’s release of interest

[Daryl Davis]

Dad died intestate in 2014. As his sole heir, I was appointed administrator of his estate.

Dad had a mortgage on his house. He was a Korean War vet and was using VA loans to cash out equity. There was not enough money in the estate to pay off the mortgage.

I found a buyer for the property, which was in distressed condition. The buyer offered ~$7k below the outstanding loan balance. The bank gave us the runaround for 7 months, at which point (2016) the buyer walked out in disgust. I filed a release of interest in the property. Probate closed a few months later in 2016.

In 2018, someone—I assume the bank—rehabbed the property. The bank released their interest in 2018.

The bank just filed a quiet title suit. They’re asking the court to void and expunge the estate’s release of interest and to quiet title, i.e., to make me legal owner. It seems no one wants this property at any price. I live a couple of thousand miles away, in another state, so moving in is out of the question.

Has anyone had a similar experience? If so, how did it work out for you? I’m not looking for legal advice (I’ve already reached out to attorneys) hence I’ve omitted mention of jurisdiction.