Why Lis Pendens are Valuable

Lis pendens is commonly heard and read about in the real estate circles. It is encountered frequently especially by those that engage in the trade of buying cheap houses and reusing them for business. What exactly does lis pendens mean and how does it affect the entire foreclosure proceeding?

What Does Lis Pendens Mean?

Lis Pendens

Put simply, the term is roughly translated to "lawsuit pending". The term is Latin in origin, like almost all legal terms are. It pertains to a document that is issued by the country clerk to all involved parties in a foreclosure proceeding together with the filing of a lawsuit by the lenders or the parties that are initiating the foreclosure procedure.

Contrary to what the uninformed might think, the document is not issued automatically as a foreclosure is initiated. Rather the lender needs to file a lawsuit first for the forced eviction of the previous homeowner in order for the county clerk to issue the document to parties that may involve themselves in the foreclosure proceedings.

How Does It Affect Foreclosure Proceedings?

The said document is not at all a deterrent or an accelerator of the foreclosure proceedings going on for a home. It is merely a document that signifies the proceeding. It tells people who are involved in the proceeding or some parties that might enter into the proceeding that the house or property involved is currently subject to a foreclosure proceeding.

In short, troubled homeowners need not worry that they cannot save their home when a lis pendens is issued in accordance with the foreclosure procedure. Lenders and interested parties also don't have to celebrate yet because it does not deter any efforts by the previous homeowner to save their residence. For more information about lis pendens and other foreclosure-related issues, kindly visit CheapForeclosureHomes.com.

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