Lis Pendens is a Latin word, which means suit pending. When a title of a real property is attached with a public notice of litigation, this notice secures the plaintiffs claim on the property, so that the sale or mortgage or encumbrance will not reduce the plaintiff’s right to the property. Lis Pendens are considered as constructive notice to the other lien holders. A foreclosure will wipe out a Lis Pendens.
Lis Pendens are normally filed by the clerk of the court, certified and then it is recorded in the County Records Office. If any property has a Lis Pendens notice attached to it, it is quite risky and so the potential buyer or a lender or any general public should be very careful as the property’s title is not clear. Mostly, the property with a Lis Pendens is difficult to sell, as no buyer is ready to buy the same. In case, anyone goes ahead and purchases such type of property at Lis Pendens, then they have to abide by the ultimate decision of the lawsuit. Legal glossary has got words from A to Z and one can refer and get to know the exact meaning of the terms of law suits.
The Lis Pendens should include the legal description of the real property and the law suit must involve the property. The foreclosure process is started by Lis Pendens which is the formal constructive notice. To begin the foreclosure process, either Lis Pendens or a notice of default is issued depending on the location of the property.
The period, from the day on which this Lis Pendens is issued, till the day the property is sold on auction is considered to be in pre foreclosure. The period varies from state to state. Some states sell the property after 3 months from the first date of the notice of default, whereas other states sell the property after 12 months.
There are many websites in which one can browse the updated searchable data base of foreclosure homes. As per the rules in Florida, the person who files the notice of Lis Pendens can file a bond of the other party. The amount of the bond is set by the court, after the Lis Pendens is filed. Lis Pendens cover all the 21 countries in New Jersey and in New York it covers all the 5 boroughs.
Some of the websites provide excellent information that a novice and a professionally experienced investor can easily compare the details, complete the deals and can compete with each other.
