Opportunity for Home Buyers in Lis Pendens
A lis pendens is a written notice which indicates someone has filed a lawsuit concerning real estate which involves the property title or any claimed ownership interested in it. Such a notice is filed in a county lands office. Any record of a lis pendens on a property alerts potential purchasers or the lenders that the title of the property is being questioned, making the property less attractive to lender or buyer. After the notice filing, anybody who purchases the property in the notice has to take subject towards the lawsuit’s ultimate decision. Filed through a lender, lis pendens occurs as a formal notice which begins the foreclosure process. As much as it’s considered just like another pending lawsuit, a homeowner has possession and also the right to refinance or sell the property.
Lis pendens represents tremendous opportunity for many investors and home buyers to earn money in real estate investment. Depending on the location of the property, either the notice or a default notice is issued on commencement of the foreclosure process. Any property is on foreclosure from the day that the written notice is filed up to the day the property has been sold through an auction. The time between the two dates vary greatly from one state to the next. Some states are known to sell properties within a 90 day timeframe since the first default notice, while others can take around 12 months.
There is a lucrative window for investors to purchase properties from homeowners prior to the selling date. This sometimes results in equity and instant savings in your property. A lis pendens also represents an equivalent of damages in monetary value that a buyer suffers. It’s recorded against a seller’s property deed. It effectively forces a seller to start payment to a buyer if there is hope to sell the property by the seller. If an insurance title company reviews a title for any sale, it notifies the new buyer of the written notice and refuses any issuance of title insurance. Without title insurance, a seller has a very hard time trying to move a property. It is overtly impossible as well as to any buyer entering the dispute.