On the same day the property was sold at the foreclosure sale, a Notice of Pendency of Action (Lis Pendens) was recorded. The property is now in the post-sale bidding process, and I am concerned about the highlighted language.
It appears that there may be a cloud on title or an active legal dispute that could affect ownership of the property. Am I interpreting this correctly?
Can you help me understand what this Lis Pendens is really about and whether it could impact a potential purchaser’s title if the property is acquired through the post-sale bidding process?
It sounds like potential heirs were trying to straighten out who inherited the property. In all my experience, those battles require one thing… that someone keep making the payments. They didn’t. Heirs fighting over who gets the property while losing it to foreclosure because no one continues to make the payments is quite common.
That said, anyone can sue anyone for anything. So if they include you in their suit, you will need to file an answer and make sure the attorney handling it understands real estate law, foreclosures, and bona fide purchaser rights. If the amount bid on the property exceeds the amount owed, they will likely still need to obtain a judicial determination to determine who receives the excess proceeds. But that doesn’t need to involve you, and their chance to retain ownership of the property vanished with the foreclosure.
