A Lis Pendens (which literally means "suit pending" in Latin) is a formal notice that is used to initiate the foreclosure process in many states. In other states, a Notice of Default starts the proceedings. Which notice is served depends on whether a state requires non-judicial foreclosure or judicial foreclosure actions. In states where non-judicial foreclosure legislation applies, a Notice of Default is filed when a deed-of-trust loan or a mortgage is not paid for several months.
Once a lender has filed this notice, they have essentially declared a pending lawsuit. At this point, there is a cloud on the title of the property until the matter is resolved. Usually, the matter is resolved when the home is sold, repossessed or is refinanced and the home loan is made current again. Until the home is actually sold as a foreclosure at auction, however, the home is still in pre foreclosure and the homeowner can still refinance the mortgage or sell the property.
Foreclosure properties that have not yet been sold at auction represent a huge opportunity for buyers. Homeowners of such "Lis Pendens foreclosure homes" are actively looking for solutions that may help them avoid outright foreclosure and the resulting credit rating disaster. It is often possible to buy these distressed properties below market value. In exchange for instant cash and avoidance of foreclosure, many owners in pre foreclosure are willing to offer discount prices on their homes as an incentive.
The window of opportunity on this type of pre foreclosure property varies from 90 days from the filing of the lis pendens to 12 months, depending on the state laws. This opportunity, however, represents a great chance for savings. To take advantage of the limited time you have to buy most pre foreclosures, you need accurate listings that can tell you at once whether a property is still available and can let you know as soon as a property goes on the market. Savvy investors and experienced buyers have come to trust DistressedPropertiesSale.com for accurate, current listings of all foreclosure properties.
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