What are Lis Pendens?
Lis Pendens is essentially the formal notice that homeowners will receive when their home goes into the foreclosure process. This document is technically considered a pending lawsuit, but the homeowner is still able to own, sell, or refinance their home before the foreclosure process ends. In Latin, Lis Pendens means 'suit pending', but it is really just a formal name for the notice of foreclosure that people receive when they stop paying their mortgage. For home buyers and investors, this little piece of paper is like a ticket to cheap homes, because so many people will try to sell homes cheaper or succumb to the foreclosure process, at which point their home will be sold for a big discount off of what it is worth.
How Do I Benefit as a Buyer?
As you already read, you'll save money on home purchases. That's the first advantage. Plus, you'll be able to practically name your price on any foreclosure homes or pre-foreclosure home that you want, as long as it is a reasonable offer. A homeowner being served with a Lis Pendens might be a nightmare come true, but for buyers and investors, it's a chance at cheaper homes.
What if I'm Served with a Lis Pendens?
If you are served with one of these documents, you need to take action. Doing nothing is the fast-track to foreclosure, so make sure that you act quickly. Call your lender, explain your situation, and try to work out a solution of some kind. This document is also referred to as a notice of default in some states. The amount of time that you have to act on this situation varies from one state to the next, as well. You need not hesitate. Arrange your financial documents, call your lender, and explain your situation to see what options you have to stop the process before it gets the best of you. Make sure you ask how long you have, because some states allow as little as 90 days while others can allow the process to go on for up to a year.
How do I Find Lis Pendens Properties That I Can Buy?
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