Gisele, Home Buyer in Orlando, FL

I would like to understand the cost of a property listed as lis pendens? What is the real price?

Asked by Gisele, Orlando, FL Wed Jun 4, 2008

I'm looking for a property with 4 bedrooms. House with pool and good space for dogs and kids. I saw some properties listed as lis pendens, but I cannot understand what that means to the buyer. The listed price is all we have to pay? Has to be cash? What is the catch?
Thanks

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5
Michael Joynt PA, GRI, CDPE’s answer
Your searching in the wrong direction, unless your a partie to the action. Dont bother wasting your time. You can access the MLS through my web site it's free and upto date. And you have no obligation to use are services at all. But the information and links to more are good.
The best to you and your family!
Web Reference: http://www.orlandomike.com
0 votes Thank Flag Link Sun Feb 26, 2012
Technically there are no properties "listed" as lis pendens. A lis pendens is just a public notice of pending legal action. When dealing with property this means foreclosure proceedings have begun.
I can only assume you saw a property "listed" as lis pendens on a site like realtytrac? The first thing you must look at is if the lis pendens notice is for a first, second or third mortgage, an HOA filing, or anything else. The first mortgage holder usually has the first right of any proceeds from the sale of a property it holds a lein on, so if the LP was filed by a second lein holder for say 10,000, it means nothing as the first mortgage holder may have a lien of 100,200,500K that will need to be paid before anyone can purchase the property.
These properties will eventually be sold at public auction to the highest bidder, with the senior lien holder setting the minimum bid (usually what is owed). If no one bids the property goes to the bank, and the bank must now sell it as an REO property that is sold just about the same as any other property and a local realtor can help you purchase these.
If you do decide to try your hand at purchasing a property at the court house steps in the auction, make sure to consult an attorney as there may be title issues, and make sure you know you are buying it as is where is with 0 warranty of any kind for anything. the house could be infested with termites, have no roof, plumbing filled with concrete, none of that matters in a foreclosure sale and buyer be-ware. To purchase at the auction you MUST have cash only, usually you put a significant amount of money down (non-refundable) the second you win the auction, and you usually have until the end of the day to show up with the rest of the $. Needless to say, NOT the ideal way for a normal homebuyer to find their next home.
Web Reference: http://www.gregtraub.com
2 votes Thank Flag Link Wed Jun 4, 2008
Gisele,
Catch,you ask well Lis pendens is Legal action taken. ( usually a foreclosure). these homes can be more affordable as they are going to sold for less than the bank has the loan for ( Short sale). You just have to know what the L/P is for,such as a 1st mortgage or HOA etc.
Rick.
0 votes Thank Flag Link Wed Jun 4, 2008
Gisele, Lis Pendens is the formal notice that starts the foreclosure proceeding. It just lets you and everyone else know that a lien holder (Bank, County Property Tax, HOA, etc.) is going to start the process and take the home for non payment, if the owner doesn't pay whatever monies are due. It can usually always be stopped, by paying the monies, up until the time of foreclosure sale. Nobody can say if thats the list price, as it depends on if it is a short sale, and if it has been approved by the bank, amongst a million other reasons. It doesn't have to be cash, you can still do the "normal" buyer steps, like getting a mortgage, ect. The catch all depends on what position the sellers is in. Your best bet would be to have a Realtor to guide you through this process. It will cost you nothing as our services are FREE. I would obviously be very interested in helping you, but if not me, be sure to get a Realtor, as these type deals can be very confusing. If you email me and let me know your prefrences, such as max price, what part of Orlando or other area, and probably a bunch more questions, I will be able to send you some listings that will meet those needs, including new construction. Thanks.
Michael Ceparano
ceppym@yahoo.com
813-417-6698
0 votes Thank Flag Link Wed Jun 4, 2008
Who knows! I've seem several properties listed as Lis Pendens (Law Suit Filed). My understanding is that the dollar amount showing is just for that particular claim. It does NOT mean that someone can walk up, pay that amount and become the owner. In some cases that just may be the case. from experience, I've seem lis pendens for $100K where the property value was over $500K ~ The property could NOT be bought for $100K! The Lis Pendens is just the constructive notice to the defendant of the pending legal matter. The Lis Pendens is NOT an offer to buy or sell property. That is my understanding, please correct me if I am mistaken.
0 votes Thank Flag Link Wed Jun 4, 2008
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