Learn all about Lis Pendens Properties
Lis Pendens – A Bargain Hunter's Bet
What is Lis Pendens?
Lis Pendens or Lis Pend is a Latin word that means, “Lawsuit Pending” concerning real estate, entailing the title to the property or a claimed ownership.
When is the property Lis Pendens?
When the homeowners are lacking on their mortgage payments, the respective lenders initiate the foreclosure process by filing a lawsuit, also known as the Lis Pendens. However, despite the suit, the homeowners hold the right to sell or refinance their house and until then possess the right of the ownership of their home.
How to find Lis Pendens properties?
Foreclosure laws vary with states, for instance Lis Pendens is filed in states adhering to judicial foreclosure laws and the Notice of Default, if used in states following non-judicial foreclosure laws. Investors and buyers can obtain information on Lis Pendens or the Notice of Default at the local County Clerk or County Recorder's office, from a local real estate agent, trace listings in a local newspaper, or register at local websites specializing in real estate foreclosures.
Benefits of purchasing Lis Pendens Properties
- Turn a profit – Lis Pendens properties, bought directly from the homeowner before the sale date, create an opportunity for the buyer or investor to negotiate the price well below the prevailing price of the home.
- Savings & Equity – A well researched and subsequently bought Lis Pendens home results in large savings and equity.
Tips on buying Lis Pendens properties
- Timely – Inquire about the time duration considered between the date of filing a Lis Pendens and the sale date, as some states sell properties within 90 days and some stretch up to 12 months! A Lis Pendens should ideally state the legal description of the property and the filed lawsuit.
- Language Barriers – In case you are purchasing a Lien Pendens Property in a territory where you are unfamiliar with the local language, hire an advocate/solicitor and ensure the documents are translated to your language before signing on the dotted line.
- Verify agents – Visit the agent's website to obtain information on areas that he/she works for and the total numbers of successful case handled independently.
- Negotiate hard – Both, the lender and the homeowner, are under financial pressure, therefore bargain firmly.