Make sure you know the rating of the title insurance company if you move forward.
The RealtyGeeks Team - we care.
First, a lis pendens means a suit may be filed...not that one already has. Still, as noted, it will cloud the title and is something to take seriously. Second, while it's reassuring that the title company says the Marshall will remove the lis pendens under certain conditions, and that the title insurance underwriter says it'll provide title insurance, I wouldn't be comfortable for a couple of reasons. First, all this should be in writing. A phone conversation with someone at the settlement company who talked to someone in the Marshall's office really doesn't carry too much weight. Similarly, a phone conversation with someone at the settlement company who talked to someone who says they'll provide title insurance--especially since the "detailed arrangement" hasn't been provided from the Marshall's office yet--isn't too solid. There could be an awful lot of "he said, she said" if something goes wrong. As I said, I'm not a lawyer, but even a Realtor can say, "Get it in writing."
But that's only your first step. You need to check with a lawyer not just to make sure what's in writing says what you think it does, but whether what's in writing is enforceable. Just because someone writes: "We will provide title insurance under these conditions" doesn't mean the person writing the letter had the authority or knowledge to do so. And if they don't, your recourse might be to sue the title company. Again, ad nauseum, I'm not a lawyer and this isn't legal advice. But this is a potential can of worms.
Hope that helps.
Solutions 3D LLC
Realtor with Long & Foster
Again - I would seek outside council from an attorney.