Foreclosure case: Settle for $100k or wait for appellate court decision?

Question

I have clients whose house has been in foreclosure since 2008. The foreclosure was dismissed twice in supreme court based on the statute of limitations under the FAPA law, and the bank appealed the decision. We're awaiting the appellate court decision, which could take up to 2 years. The loan balance is $1.1M, and the bank has offered a settlement of $100k. The attorney advises accepting the offer fearing a higher court might rule against the FAPA law, but the owners want to wait for the appellate court decision in hopes of owing nothing if the ruling is in their favor. They cannot afford $1.1M if the decision goes against them, and the bank's settlement offer expires in 14 days. What should they consider in deciding whether to settle or wait?

Charles Holster · Answer

I would not make any recommendation to a client without first knowing all of the facts, which usually requires a review of the court documents in the case, as well as speaking to the clients.  
 
But, in order decide whether to accept a settlement offer, rather than waiting for a decision on a pending appeal,  the client and the attorney have to consider the appeal's probability of success, and the amount of money that is at stake.   
 
In the case you are inquiring about, if there is any chance that the bank could win its appeal, and thereby get a judgment against the client for $1.1 million, then I would recommend that the client accept the bank's offer to pay the bank a settlement of $100,000.  But again, I don't know all the facts.  There could  be other legal or personal reasons for not accepting the bank's offer.

Q: Foreclosure case: Settle for $100k or wait for appellate court decision?