Home Buying in 60647>Question Details

Cookie, Home Buyer in Chicago, Logan Square,...

Okay, I just need this in layman terms, so please as simple as possible. The property next door to me is listed for $95K on a real estate website,

Asked by Cookie, Chicago, Logan Square, 60647 Tue Dec 1, 2009

and the status is avaiable, it's a tear down. I checked the tax record, and it has a 'lis pendens', what does that mean exaclty, and please, no fancy words, just straight up easy terms to understand. If I wanted to buy it, should I offer the full amount? Can I even buy it with this 'lis pendens'? What happens if now one buys it, would the price be more? I think I want to buy it, but I've no real strategy on how to approach the sale. And please, I've already a real estate agent, I'm just looking for a second opinion....thanks!

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I would agree with Wayne. Your agent SHOULD be able to answer these questions for you.

Bottom line, SOMEONE (either the current owner OR the bank who was holding the note) is trying to sell this property, and SHOULD entertain all offers, and they must provide clear title to the property. So consult with your agent and your attorney and come up with a number you feel comfortable with, then present the offer to the seller's agent.

From a lending standpoint, however, if this is a tear down, you will probably not be able to get a conventional loan (since lenders don't want to lend on any distressed properties) so I would hope if you do pursue this property that you're able to buy it for cash.

FHA still offers a renovation loan, but most lenders (including me) top out at around $30,000 worth of improvements. Also, FHA loans are for owner-occupied properties only, so if you're thinking about this property as an investment, it sounds like you'd have no choice but to buy it for cash.

If you have any other financing questions, feel free to contact me at the numbers below.

Matt Bukovy
Sr. Mortgage Consultant
Wintrust Mortgage
3317 W. Irving Park Rd.
Chicago, IL 60618
Cell 773-416-7107
Phone 773-654-2498
eFax 773-409-5558
0 votes Thank Flag Link Tue Dec 1, 2009
It means you need to hire an attorney because whoever buys this will have to deal with a third person who is claiming a stake in the property.
0 votes Thank Flag Link Sat Jul 28, 2012
lis pendens
(lease pen-dense) n. Latin for "a suit pending," a written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property. The lis pendens (or notice of pending action) is filed with the clerk of the court, certified that it has been filed, and then recorded with the County Recorder.
http://dictionary.law.com/Default.aspx?selected=1172

If you are interested in searching thru the Public Records for information perhaps this will help...
For Cook County..http://publicrecords.onlinesearches.com/IL_Cook.htm
Illinois - Statewide Public Records Links
http://publicrecords.onlinesearches.com/Illinois.htm

Foreclosures and Tax Lien Sales resources in Illinois
http://publicrecords.onlinesearches.com/Illinois-Foreclosure…

Find Foreclosures and Tax Lien Sale Records Resources by State:
http://publicrecords.onlinesearches.com/Foreclosures-and-Tax…

Good luck, dunes
0 votes Thank Flag Link Tue Dec 1, 2009
A lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the "TITLE" to the property or a claimed ownership interest in it.

Resolve, the property’s "TITLE" is in question.
Further resolve, look the other way, until, you have "ALL" the facts.

Note: Anyone who nevertheless purchases the land or property described in the notice takes subject to the ultimate decision of the "LAWSUIT".

WAIT WAIT WAIT WAIT........ (((((((HINT)))))) A foreclosure will wipe out a lis pendens.
"NEVER PURCHASE A PROPERTY BLIND"..you need all the facts luv. HmMm
0 votes Thank Flag Link Tue Dec 1, 2009
It is time to talk to your attorney for guidance on your questions. A lis pendens puts you on notice that a suit has been filed, usually involving title or ownership of the property. I think you will find that even if you can and do make an offer it will be subject to the outcome of the lis penden. Your attorney can review the property information and perhaps pin your answers down more tightly.
0 votes Thank Flag Link Tue Dec 1, 2009
Lis Pendens means litigation pending. In short, someone has filed a claim to the title of the property. It may be a mechanics lien, and mortgage or some other claim.

You'll have to examine the situation in more detail to find out what the story is. Your agent should be able to help you with this. If not, I recommend you get one that can advise you.

Best of Luck.

Wayne Beals
312-77BEALS
312-772-3257
wbeals@kw.com
0 votes Thank Flag Link Tue Dec 1, 2009
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