A New York court has ruled that standard settlement conference rules don’t apply in foreclosure cases when the borrower is already deceased.
On November 13, 2025, the Appellate Division, First Department, decided Municipal Credit Union v Thomas – a case that matters for anyone handling foreclosures involving estates. Here’s how it unfolded and why it’s important for mortgage professionals.
Edward Watkins took out a loan from Municipal Credit Union (MCU), using his Bronx condo as collateral. Watkins died in early 2019, and his estate, managed by executrix Kim Thomas, stopped paying the condo’s common charges. MCU knew about Watkins’s death and Thomas’s role as executrix. In February 2022, MCU began a foreclosure action, naming Thomas and others as defendants…