Hello, we are a Point Pleasant Beach Real Estate Brokerage and Agency.
That property is Lis Pendens, which in simplified terms means it is taken as "constructive notice of the pending lawsuit, (as in NJ we are a judiciary state, one of the few, that will judicate upon foreclosures in a lawsuit type process) and it serves to place a cloud on the title of the property in question until the suit is resolved and the notice released or the lis pendens is expunged.
Careful lenders will not lend money on the security of land which is subject to a lis pendens, as title insurance companies will not insure the title to such land: title is taken subject to the outcome of the lawsuit. Because so much real property is purchased with borrowed money, this largely keeps the owner from selling the property. It also may keep the owner from borrowing money secured by the property (such as to pay the costs of defending the suit). Similarly, careful buyers will be unwilling to purchase the land, at least not at what the full value would be without the cloud on title.
It is important to note that the presence of a lis pendens does not prevent or necessarily invalidate a transfer of the property, although it makes such a transfer subject to the outcome of the litigation. As such, it tends to scare off diligent, reputable lenders and careful buyers. Thus, the owner is not prevented from selling the land for (non-borrowed) cash, pledging it as security for a speculative loan, or giving it awayâ€”subject to the outcome of the lawsuit. However, once the lis pendens is recorded, the recipient (a "purchaser" or "grantee pendente lite") would be deemed to have notice of the litigation, and thus would not be a bona fide purchaser, and the title might be regained" ('Lis Pendens; Effect.' Retreived February 17, 2010: http://www.realtor.com
If you would like someone to further explain the foreclosure process to you, or other real estate aspects concerning short sales, or just the home-buying process/selling process, please do not hesitate to contact our office at (732) 892-9900, or visit us at http://www.cararealtors.com.
Good luck in your home-search, and please call if you need a real estate question answered without hassle or pressured sales pitch.
Point Pleasant Beach, NJ