The term â€œlis pendensâ€ is Latin for â€œsuit pending.â€ A lis pendens is filed against a real property to indicate that the title of property is in question, or that some sort of lawsuit involving the property could occur in the near future. When someone files such a notice, it serves as a public notification that the property is involved in a lawsuit. For property buyers, a lis pendens is generally viewed as a turnoff, as this legal notice could devalue the property, complicate the transfer of title, or make it impossible to obtain a mortgage on the property.
One of the most common reasons to file a lis pendens is when a property goes into foreclosure. If a lender feels that a foreclosure will be necessary, the notice forestalls any attempts to sell the property to evade foreclosure, since the legal notice will turn up on a title search. A lis pendens may also be filed if someone feels that he or she has a legal claim to a property title, or in any other circumstances where people want to question the validity of a property title.
So, since title transfers directly to the note holder/mortgage company at the trustee sale, a Lis Pendens will not stop the transfer from mortgagee to mortgagor. It could temporarily delay an immediate future sale, in the event the property sells to a private party at the trustee sale. Seek legal advice from an attorney.... more