The lis pendens process is a judicial process of foreclosure that is used by lenders to institute foreclosure proceedings against borrowers who have defaulted on their mortgages. Not all states use the judicial process of foreclosure so you need to check your state laws to determine the foreclosure laws in your state. Other states use the non-judicial trustee sale process of foreclosure, which does not require court approval. Some states use both processes.
Process of Lis Pendens Foreclosure
The following is a timeline of the judicial foreclosure proceeding process:
- The proceedings are initiated by the lender filing a lis pendens (pending litigation action) in the court in the county where the property is located.
- The lender must serve a copy of the lis pendens notice upon the borrower and all junior lien holders.
- The borrower has a statutory time to respond or the court enters a default judgment and the foreclosure sale auction takes place.
- The notice of sale is posted on the property and at the courthouse or some other public location and published in a newspaper of general circulation in the county where the property is located.
- The foreclosure auction sale is open to the public and generally held on the courthouse steps. The highest bidder is awarded the property. The property is transferred to the new owner after the court approves the sale.
- Some states allow the borrower the right of redemption after the foreclosure sale. This means the borrower can pay all sums owing including fees and costs and redeem their property.
- Judicial foreclosure processes take approximately 3-6 months or longer.
- The lender may obtain a deficiency judgment against the borrower for the difference between the sale proceeds and the loan balance. Not all states allow deficiency judgments though.
Help From a Lawyer
Lis pendens law is complicated and you should consult with a foreclosure defense lawyer if your lender has initiated a lis pendens process against you. The lawyer is an expert in lis pendens law and can help you defend yourself and advise you of options to save your home from foreclosure.
