Lis Pendens Foreclosure: What It Means and How to Respond

Lis pendens is a powerful legal notice. Your lender files it when starting foreclosure proceedings. It warns the public that your property faces a legal claim.

The notice clouds your title. You can’t easily sell or refinance until you resolve the issue. Understanding how it works gives you options to fight back.

What Does Lis Pendens Mean?

Lis pendens translates from Latin as “suit pending.” It’s a formal notice alerting everyone to a legal claim on real estate.

Lenders use it when beginning foreclosure. But other situations trigger it too.

Common reasons for filing include:

• Divorce proceedings: One spouse challenges property distribution.
• Contested wills: An heir disputes property inheritance.
• Mortgage defaults: You miss payments and your bank moves to foreclose.
• Contract disputes: Someone claims ownership rights through a broken agreement.
• Unpaid property taxes: The tax authority forecloses on a tax lien.

The county recorder’s office maintains the notice as public record. Once filed, it creates a cloud on your title. Selling or refinancing becomes nearly impossible until the matter closes.

How to Find and Remove a Lis Pendens

The notice lives in your county recorder’s office. That’s where your property title is recorded too.

You can search online or contact the office directly. Title companies also conduct searches for a fee.

Three Ways to Remove It

Reach an agreement: You and the filer settle your dispute. The filer then withdraws the notice voluntarily.

File a motion to expunge: You ask the court to remove an invalid claim. You’ll need proof the filer lacks legitimate property rights.

Post a bond: You offer money or collateral covering the claimed amount. The court determines the bond size based on property value and state law.

If your case goes to trial, the judge’s ruling removes it. In foreclosure cases, it disappears after the property sells.

What Is a Lis Pendens Foreclosure?

Judicial foreclosures use lis pendens notices most often. Your lender files a lawsuit to take your home.

The lender simultaneously files the lis pendens with the county recorder. Twenty-two states require this step. It happens when the foreclosure complaint reaches the court.

Non-judicial foreclosures skip the court system entirely. Lenders file a notice of default instead. Both are public warnings about foreclosure risk.

A lis pendens describes the legal claim and property details. A notice of default focuses on your missed payments.

Either filing puts your property in preforeclosure status. That’s the early foreclosure stage. The duration varies by state law.

How to Stop Foreclosure

You have options outside your current lender. Some states offer redemption periods after the sale. You can repay everything owed and reclaim your property.

Refinancing with a new lender might provide better terms. Filing bankruptcy temporarily halts foreclosure proceedings. It buys time to catch up or restructure your debts.

Work With Your Current Lender

Several strategies help you keep your home or exit gracefully.

Options to stay in your home:

• Repayment plan: Add extra amounts to regular payments. You gradually eliminate the shortfall.
• Loan modification: Your lender adjusts terms permanently. Lower interest rates or extended terms reduce monthly payments.
• Forbearance: Temporarily pause or reduce payments. You get breathing room to stabilize finances.

Options to avoid foreclosure by leaving:

• Deed in lieu: Voluntarily transfer property ownership. The lender releases you from loan obligations.
• Standard sale: Sell your property at market value. Use proceeds to satisfy the mortgage.
• Short sale: Sell for less than you owe. Your lender must approve this arrangement.

Credit Impact Considerations

Foreclosure devastates your credit for seven years. Some alternatives minimize the damage.

Loan modifications and forbearance protect your credit better. Short sales still hurt if you don’t cover the full balance.

Working with our partner Cambridge Credit Counseling can help you explore all options. They negotiate with lenders on your behalf.

Understanding Your Timeline

Speed matters when you receive a lis pendens. The foreclosure clock starts ticking immediately.

Judicial foreclosure states give you more time. You’ll receive court summons after the lis pendens filing. You must respond within the deadline your state specifies.

Missing deadlines costs you negotiating power. You lose the chance to present defenses in court.

Contact your lender as soon as possible. Many prefer workout solutions over costly foreclosure proceedings.

Your Rights During Foreclosure

Federal and state laws protect homeowners facing foreclosure. You have the right to receive proper notice.

Lenders must follow specific procedures. They can’t simply take your home overnight.

You can challenge improper foreclosure practices. Common defenses include predatory lending, incorrect payment application, and procedural violations.

A bankruptcy attorney consultation reveals whether you have valid defenses. Many offer free initial reviews.

Key Takeaway

A lis pendens notice signals serious trouble. Your lender has started legal proceedings against your property.

You still have time to act. Multiple options exist to save your home or exit strategically. Contact your lender immediately to discuss workout solutions. The sooner you respond, the more choices you’ll have.