Lis pendens foreclosures are properties which have a pending suit against them due to the failure on the part of the home owners in paying their mortgage payments to their concerned lenders. A viable property for prospective homebuyers and real estate investors, it is a common practice to buy foreclosures lis pendens from the previous owners who still posses the rights of selling the property.
Lis pendens is the Latin term which means a “pending suit” and refers to the notice filed by a bank or a mortgage company at the county office. Before the lenders foreclose any property a lawsuit is filed against the concerned property due to payment defaults by the homeowners.
When a property is facing foreclosures lis pendens the homeowner has complete ownership until the property is finally foreclosed. During this period which is known as pre foreclosure the homeowner has the rights to sell or seek refinancing for the property.
If you are interested in buying a foreclosed property it is beneficial to know about the process of lis pendens foreclosures as it further increases your chances to find a good deal.
– Selling rights – Once properties undergo such foreclosure there is a high probability that the owner might be interested in selling the house instead of going in for refinance.
– Pre foreclosure process – The moment a notice is filed against properties and they become foreclosures lis pendens, the pre foreclosure process begins which can last for a few months to a year.
– Negotiable deals – Foreclosures lis pendens are usually sold at prices that are 30-50% of their actual market value as the home owner is keen on selling the property in order to avoid facing the consequences of a lawsuit. This is a major reason why most of these properties can be negotiated for highly reduced prices.
– Sources – There are thousands of such foreclosures available in the real estate market which can be found online through various pre-foreclosure listing services.
– Good investment potential – Buying such foreclosures is a good investment opportunity as there are very good chances of finding homeowners facing financial crisis willing to sell the properties located at premier regions in the country at highly discounted rates.