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Will vacate order if I sign release.


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I was unaware of a default judgement until I applied for a mortgage.  This issue came up and I immediately contacted collection agency. They could not give any info. After two weeks of back and forth, disputing debt, and contacting the court, the debt collector agreed to vacate the judgement if I sign a release of liability. I won't be able to close by my close date but seller is willing to extend until this matter is settled. Can they refuse to issue vacate if I refuse to sign release of liability? If they are slow filing vacate to court and I sign release, would I have any grounds to sue? I want this settled so I can get my house but I don't want to do something that I won't have any recourse if they drag their feet. 

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