Lis Pendens Can Help You Find Distressed Properties For Sale
Lis Pendens is Latin and translated means suit pending
. Sometimes called a notice of default, notice of Lis Pendens is an official filing indicating that the title of a property is in question and that the lender plans to foreclose on the property. The notice is usually filed after the home loan on a property has been outstanding for a few months. Once the notice is filed, it places a cloud on the title of the property, although this is resolved once the property goes through the foreclosure process. The notice of default officially places a home in pre foreclosure.
Pre-foreclosure is a wonderful time to buy a home. At this stage in the foreclosure process, everyone involved wants to stop foreclosure. The homeowner wants to avoid the process and avoid ruining their credit. The lender, too, does not want to add a foreclosure to their foreclosure listings and usually does not want the trouble and expense of a foreclosure. During the pre foreclosure stage, both the homeowner and lender are often willing to work with a serious buyer to resolve the problem and stop foreclosure. Homeowners and lenders are often willing to consider all reasonable offers. It is possible to buy a pre-foreclosure for less than full market price or put together a short sale deal with the lender that will allow you to buy the home for less than the mortgage amount owed.
It all begins with the Lis Pendens, since the notice of default is usually how you till find pre-foreclosures. Pre-foreclosures are not usually advertised because they are not officially for sale yet. A Lis Pendens is usually the best way to find these properties.