hi all!

I have a sale that has a 1st w/BofA at 460,000, a 2nd that WAS BofA and is now Nationstar (just last week in the middle of my negotiations) and now the prelim comes out and voila, there's a judgement against the wife for $25k. The judgement was due to a craft former employer who happens to be an attny who claims his employee (the wife) stole 3k from him. The judgement is 25k due to "administration costs".

Now my question is how in the world do I convince either the 1st or 2nd or both to pay this? The person will NOT release it from the house in order to close it; BK wont get rid of it. Letting the bank take the house back appears to be only solution but neither seller nor I want that to happen. (Oh and sellers are in the process of a divorce too btw....). Husband and wife both on title, Husband ONLY one on both the loans. We are in California as well. House had 15 offers on it and we are in escrow at 580k.

I need some brains, as I think I fried mine on this one, to help me! Any great words of wisdom out there?