Lis pendens on property - safe to purchase?

A Notice of Lis Pendens is a document recorded with the county recorder notifying the public that a specific piece of property is subject to litigation that may affect ownership of the property. This could be a foreclosure, but it's more likely a lien for unpaid HOA fees. Our title company is doing their job.. You should be ok.. The lender will not allow your loan to be funded if there are unpaid liens.. And you're paying for title insurance which will pay for any liens that were not disclosed at the time of the sale.. The title company will not issue insurance on this property unless they are satisfied that the lien is properly released.. Should be no worries.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The title company just protected you from having an unresolved lien on your new property. Once the lien is removed, the title company takes all the risk of any future legal action. You will receive an owner's policy after closing which will cover you for 99% of all possible ownership challenges. Don't worry about the 1 per cent. I just had to throw that in for compliance. Just be patient and wait a few extra days.If the purchase falls through because of this lis pendens, you MAY be able to sue the seller for specific performance, but it would probably not be worth the expense.

Lis Pendens is the first part of a foreclosure process. So the house you are buying is about to go into foreclosure. You need to make sure that the seller has the right to sell - I would make sure title as done a judgement and lein search to be sure nothing else is open. Once those things are done you should be fine to close. The seller has to give you clear and sellable title and the title company has to make sure of it.

A "Lis Pendens" is just simply notice of a pending lawsuit or other legal action that involves the property. It does not necessarily mean it is about to be foreclosed on, or anything. Typically, when we see a Lis Pendens as a mortgage professional, we advise seeking out if it can be cleared off title, and if not walking away. These things often take longer to clear off than the attorneys will tell you, but it is good news there is an intent to dismiss this. If the sellers were aware of a Lis Pendens, then yes, you probably should have been told sooner or should have at least been told prior to your inspection and appraisal being completed. Once you go under contract, a title report is usually in somebody's hands within a day or two; it's very likely the seller's agent or the bank knew about it before you went under contract, even. If you were supposed to close today and this is the first you're hearing about the problem, it sounds like everybody dropped the ball and didn't communicate things to you properly. I guarantee somebody at your lender's office knew about this before the appraisal was ordered; the problem is everybody gets so obsessed with speed sometimes, they forget to do proper due diligence. I'd rather be slow but do it right the first time, personally. You'd have to speak to your realtor or an attorney to determine if you can take any legal action, but it sounds like things will be on your side if you can't get it worked out amiably in the near term. It sucks being in this situation, but try to be patient and understanding anyway, as it usually helps things to proceed properly..."you catch more flies with honey..." Best of luck to you!

As the others have explained it needs to be looked at from a title standpoint. I am your local lender here in Utah so give me a call and I will have my title company do some research for you. Call me at 801-971-6901 and my website is www.UtahLendingPro.com Thanks Carlo

The title company should protect your rights on the property. Lis Pendens is the very first notice of legal action on the property. You are likely purchasing a short sale or something very close to that. If you close and the title company gives you clear title you should have no worries.

If the title company is OK insuring over it, there is no problem on the lenders part, and there should be no issue for you to buy.

The Lis Penens means there is pending litigation against the property. I am not an attorney and this should be be construed as legal advise. But you should NOT close until it is dismissed. It is UNLKELY the bank will fund the loan anyway until you have CLEAR title to the property. In addiiton, there should have been language in your contract that requires the seller to deliver clear title to you. If they cant do that then THEY are the ones in breach of contract and you should be able to walk away without losing any money. You should check with an attorney on this before doing anything.