What Is a Foreclosure Lis Pendens?
October 18, 2008
The term “lis pendens” is a Latin term that means “suit pending.” And that’s essentially what it is. A lis pendens is a formal notice that signals the beginning of the foreclosure process.
While a lis pendens means foreclosure proceedings are underway, the homeowner remains in possession of the property and retains the right to refinance or sell. The notice of default or lis pendens puts the property in a state of pre-foreclosure, where it will remain until it is sold. This amount of time varies greatly from state to state.
The filing of a lis pendens alerts lenders and buyers that the home’s title is in question and makes the property less marketable. This means that, should a homeowner wish to sell after the lis pendens is filed, he or she will possibly be offered a considerably smaller amount than the property’s actual market value.
There are investors that will buy homes with a lis pendens filed. The lis pendens gives investors an opportunity to buy the property at a considerably lower price than if they wait until the foreclosure proceedings are finished.
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