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Loading ...If you intend to buy foreclosure properties, it is imperative that you are aware of some of the technical terms used in the industry. Lis Pendens is one of the terms you should know. It is a Latin term which simply means ‘Lawsuit pending’. When doing your research on foreclosed property and you come across this term, you should not be undeterred about the house. This is because it simply shows that a lending institution has filed for foreclosure in a court of law against the property owner. This document is usually filed in a recorder’s office or the county clerk’s office to show a third party who might be researching about the property that the property is about to be foreclosed.
When the lawsuit is filed, it means that the foreclosure process cannot be stopped as the lender and his attorneys are already actively pursuing the property. So if you are looking to buy property, you might consider stopping over at the county clerk’s office and looking at any properties that have a foreclosure lawsuit pending against them. It takes at least 90 days to a year before the property is sold depending on different States, that is, if the property owner does not sell it before then.
These properties that already have lawsuits against them are usually listed. If you are looking for them, you might want to look in the pre foreclosure section of the listings. There are millions of such listings online. Most people who do the listing are usually on the look out for such property and usually put in an addition the moment a lawsuit is filed.
The best way to go about buying such property is to track the owner and try to get them to sell it to you before they face foreclosure. Most of property owners will be open to negotiations, especially if the foreclosure is looming near. They will be more willing to bargain on your terms; hence you can get yourself a good deal.
For the smart investor, Lis Pendens property is usually a lifetime opportunity. This is because the owners might be willing to sell up to 50% less than the property price. This is because the title of the property is already in distress and has been negatively affected.
