Life insurance is paid to the beneficiary outside one's will.
If the deceased had wanted to change the beneficiary, she should have. However, there's no way to be sure it was not done this way intentionally. Perhaps knowing that person X was to receive the proceeds of insurance, X was disinherited so as to "even out" the distribution? (Or at least the argument goes).
Many an ex-spouse has benefitted by such oversights.
Are you a beneficiary of the estate?
Does the estate have assets other than the house?
If you're not a stranger to the estate, perhaps you can help negotiate a settlement with the 3rd party judgment creditor that will enable you to take the house free of that lien. You definitely need to sit with an attorney right away before you do anything.
I note that I, and some others, answered this same question because you re-phrased it slightly and chose different topics last night when you posted both. I also note that you posted twice in the last week, if I remember correctly (before the fire). You really should sit with an attorney and go over your rights and possible remedies, but be prepared to spend a few dollars. There's no way any of us can help you here - especially when you trickle facts to us over the course of various posts....
I don't see any cause of action here. You're now on notice that you have a madman for a landlord and you've already suggested (rightfully so) the hell with your deposit. By the way, your deposit must be returned after you leave the premises provided there's no damage. Get out of there ASAP.
Depending on how he held title with his sister and whether he obtained them prior to or during your marriage, you may not have any interest in the properties. You should sit with a local attorney who can obtain copies of the deed in question, review them, and help you decide whether and how to proceed.
If you're both still "borrowers" you'e both probably still jointly and severally liable for the debt. The fact that you had exclusive possession probably also means you were responsible for the carrying costs. Chances are, if yours is like many I have seen, at the sale, you would be entitled to a credit for the principal payments you made from the date of the order through the date of the sale, but you would have been solely responsible for taxes, interest, water, utilities, etc. The fact...
Are you a beneficiary?
While you await the appointment of a new executor, If you can afford to do so, pay them yourself - you will be reimbursed. If not, find some other beneficiary who can afford to temporarily lay-out the money.
I do not disagree with Mr. Bianchi, but wish to point out that you'd better be sure your apartment is no legal before relying on it. A court will not look well upon someone who thinks he can live somewhere for free. Of course, if you had the money for a lawyer, you would be able to pay the rent, but you you will need one when the landlord commences the eviction. Maybe consult with a local attorney now?