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Foreclosure processPre-foreclosure

Lis Pendens

Also called Notice of pending action, Notice of lis pendens

In short

A lis pendens is a recorded notice that a lawsuit has been filed involving title to or an interest in a property, such as a judicial foreclosure. It warns buyers that the outcome could affect ownership.

Meaning
Latin for 'suit pending'
Where it's recorded
County land records
Common in
Judicial foreclosure states
Risk for buyers
You take title subject to the suit

Where it fits in a foreclosure

Lis Pendens belongs to the pre-foreclosure stage.

  1. 1Missed paymentsThe owner falls behind; the servicer sends notices and may offer workout options.
  2. 2Pre-foreclosureA notice of default or lis pendens is filed. The owner can still sell, catch up or negotiate.You are here
  3. 3AuctionThe property goes to a public sale, usually for cash, as-is and often without an inspection.
  4. 4Bank-owned (REO)If no one outbids the lender, it takes the property back, clears most title issues and lists it.
  5. 5ResaleA buyer or investor purchases, repairs and occupies, rents or resells the home.

What a lis pendens does

A lis pendens puts the public on notice that a lawsuit could change who owns a property or what claims attach to it. Anyone who buys the property or lends against it after the notice is recorded generally takes their interest subject to the outcome of the case.

Lis pendens in foreclosure

In judicial foreclosure states, the lender files a foreclosure lawsuit and records a lis pendens. That recording is often the first public sign of pre-foreclosure, playing a role similar to a notice of default in non-judicial states.

A lis pendens is not only used in foreclosures. It can also be filed in boundary disputes, divorces, contract disputes over a sale, or lien enforcement actions.

How it is released

A lis pendens is typically released when the lawsuit is dismissed, settled or resolved, for example when the owner reinstates the loan or sells the property and pays off the lender. Procedures for removing one vary by state, and a title search will show whether one is still on record.

Example

A lis pendens on a property you want to buy

A buyer finds a home listed at $275,000. The title search shows a lis pendens recorded four months ago by the lender in a foreclosure suit, with about $230,000 owed. The buyer can still purchase the home, but only if the sale pays off the lender and the lawsuit is dismissed and the lis pendens released at or before closing. Otherwise the buyer could lose the property to the foreclosure.

Lis Pendens vs. Notice of Default

Lis Pendens

A lis pendens is a recorded notice that a lawsuit has been filed involving title to or an interest in a property, such as a judicial foreclosure. It warns buyers that the outcome could affect ownership.

Notice of Default

A notice of default (NOD) is a public notice, recorded with the county, stating that a borrower has fallen behind on a mortgage or deed of trust and that the lender may move toward foreclosure.

The differenceA lis pendens signals a lawsuit, as in a judicial foreclosure. A notice of default starts the out-of-court process used in non-judicial foreclosure states.

Frequently Asked Questions

Related terms

Judicial ForeclosureForeclosure processA judicial foreclosure is a foreclosure that goes through the courts: the lender sues the borrower, a judge orders the sale, and the property is auctioned, often by a sheriff or court officer.Pre-ForeclosureForeclosure processPre-foreclosure is the period after a lender files a default notice or foreclosure lawsuit but before the property is sold at auction. The owner still holds title and can sell or catch up.Title SearchTitle & legalA title search is a review of public records to confirm who legally owns a property and to find any liens, judgments, easements or other claims that could affect ownership.LienTitle & legalA lien is a legal claim against a property that secures a debt. It must usually be paid off before the property can be sold with clear title, and the creditor can force a sale in some cases.ForeclosureForeclosure processForeclosure is the legal process a lender uses to take back and sell a property after the borrower stops making mortgage payments, so the lender can recover what it is owed.Title InsuranceBuying & closingTitle insurance protects a buyer or lender against losses from ownership problems that existed before the purchase, such as undisclosed liens, forged documents or recording errors. It is paid once at closing.Notice of Trustee SaleForeclosure processA notice of trustee sale is the public notice, in a non-judicial foreclosure, that sets the date, time and place a trustee will auction a property to repay the defaulted loan.Foreclosure AuctionForeclosure processA foreclosure auction is the public sale of a property after a borrower defaults, where the highest bidder buys it, usually with cash and as-is. If no one outbids the lender, it becomes bank-owned.

Learn more in the knowledge base

Title, Liens and Due Diligence on Distressed PropertiesGuide · 9 min readDistressed properties often come with debts and paperwork problems attached. A title search, a clear understanding of which liens survive a sale and the right title insurance protect you from inheriting someone else's obligations. This guide explains what to check and when.What Is a Pre-Foreclosure? How the Stage Works for BuyersGuide · 7 min readPre-foreclosure is the window between a lender starting foreclosure and the home being sold at auction. The owner still holds title and still has options, so any purchase is a negotiation with the owner rather than a bid or a bank sale. This guide explains how the stage starts, how it ends and how it compares with auctions and bank-owned homes.How to Find and Screen Pre-Foreclosure PropertiesGuide · 6 min readPre-foreclosure leads come from public filings, so anyone can find them. The real work is narrowing a long list to the few properties worth your time. This guide covers where the filings are recorded, how to use a listing service, and how to screen each lead for equity, timeline and occupancy before you contact anyone.
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Disclaimer: The information on this page is for general educational purposes only and is not legal, financial, tax or investment advice. Laws, lending rules and market conditions vary by state and change over time, and any figures shown are estimates. Before you buy, sell, finance or bid on a property, consult a qualified attorney, financial advisor, lender or licensed real estate professional about your situation.