Home Buying in 91344>Question Details

Rob, Home Buyer in 91344

I am in the process of purchasing a foreclosed home. The property is now owned by a bank. Escrow was supposed

Asked by Rob, 91344 Wed May 13, 2009

to close about a month ago. I just learned that a previous potential purchaser filed a lis pendens on the property. (The Bank accepted my offer after the other purchaser was not able to meet all the necessary requirements to close escrow within the given time frame) Can I still purchase the home? If so, if the bank is unsuccessful in defending the claim by the other purchaser, can I later be ousted from the home or sued by this person for quiet title?

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If the previous potential purchaser filed a lis pendens on the property, you should not purchase it unless the claim of ownership/cloud of title is cleared between bank and previous potential buyer. Or in simple words, previous purchaser withdraws his lis pendens from the property. You can speak to the title company also, I doubt it with lis pendens on the property, any title company will issue a warranty with respect to clear title in your name, at the purchase of the escrow.

I wish you good luck with respect to completion of the sale.
1 vote Thank Flag Link Mon Oct 11, 2010
Lis Pendens puts a cloud on the title.Lis Pendens has to be removed in order for you to get a clean title.Title Co won't issue title insurance.Look for another property unless you want to wait till the Bank can resolve the issue of Lis Pendens.You need to consult a Real Estate Attorney.
Good Luck !
0 votes Thank Flag Link Wed Apr 27, 2011
The title insurance that you purchase should insure that you have a clear title at close of escrow. I would recommend that you speak with a title representative from the company that is providing the title insurance and discuss your specific situation. Ask your real estate agent to put you in contact with the local title representative.
0 votes Thank Flag Link Wed May 13, 2009
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