Lis Pendens on a Trustee Sale Auction


#1

Does anybody know what will be the status of the trustee sale if the foreclosed owner filed a law suit one day prior to a trustee sale & there is a LIS Pendens at the lands record. My question is , if i bought this property at the court house, will i be a part of the Lis pendens? Can I still get a title policy? Can I still flip the property?


#2

A Lis Pendens is a cloud on the title. You need to read through the related court case. Most of these are owners suing the banks for bogus doc issues. Since the foreclosure hasn’t happened yet I don’t think it can be for wrongful foreclosures.
In my experience you CANNOT sell the property until the Lis Pendens is released which can sometimes take a year or so.

I doubt that the property will go to sale, will probably get postponed.


#3

Property did go to sale & was not postponed. One of the investor bought it. The Lis Pendens says that owner(now previous owner) says in the filing that Trustee has no position to foreclose the property. Foreclosed owner( filed the LIS pendens by himself with out the help of an attorney. Tue Aug 28th 2012 at 6:06am


#4

If they self filed it probably isn’t much to worry about, but will be a headache for the auction buyer. Easiest was to clean it up is to negotiate a cash-4-keys with the prior owner and have them release it. If they are non-cooperative then it will require legal action (time and money), but will probably get cleared up. If for some reason it doesn’t get cleared up, and the prior owner pursues and wins their case, the auction buyer should be able to recover their purchase amount from the bank. Sean Tue Aug 28th 2012 at 5:19pm