“Lis Pendens” is a common term consumers come across who are at risk of foreclosure or in the initial stages of the foreclosure process. The positive thing to keep in mind if you have received a Lis Pendens is that there are steps you can take to stop the foreclosure from taking place.
Lis Pendens is a Latin term meaning “suit pending” and sometimes also referred to as “notice of pendency of action” in California. Lis Pendens is a legal document filed with the county registrar of deeds in the county in which the property in question is located. Filing a lis pendens serves as notice to any and all persons interested in the property, potential buyers, lenders, etc, that the property is amidst a legal action concerning real claims of the property.
While the homeowner may still hold the title to the property in question during the duration of the lis pendens, the filing of this document makes it very difficult to sell since the title to the property is clouded until the lis pendens suit is complete, and any party that acquires the property during the suit is subject to the final judgment and ruling. It goes without saying that buyers and lenders are not eager to enter into a sale in which they are subject to uncertain and to-be-determined terms. It is also very difficult to obtain a loan modification, refinance, or transfer title to the property in question when a lis pendens has been filed involving the property.