What does a lis pendens mean in the foreclosure legal process?
One of the legal terms that homeowners in foreclosure often come across is lily hangs. They may initially find out about the term when trying to refinance their home and be turned away by the mortgage broker because of this type of document filed against the property. if a lily hangs has been filed, it will appear with the county recorder as a document affecting title.
IN lily hangs it does not stop or prevent foreclosure at all, as it is simply a document that notifies any other party that you are investigating the particular property affected by the document. In most cases of a homeowner behind on their mortgage payments, the lender’s attorneys will file the initial foreclosure lawsuit with the court and a lily hangs will be sent to the county clerk’s or recorder’s office to indicate that a particular property is in the process of pending litigation.
The term lily hangs is Latin for “pending judgment,” and the judgment it refers to is the legal process of foreclosure. If the lender was not suing for the sale of the property to pay off the delinquent mortgage loan, this document would never be filed in the first place, as there would be no pending lawsuit.
In fact, a lily hangs specifically states that the property is facing foreclosure, and the document will show anyone, such as a title company or potential foreclosure refinance lender, investigating the real estate that is involved in a lawsuit. So he lily hangs is meant to signify foreclosure; it does nothing to prevent foreclosure, but it does not affect a homeowner’s ability to save their home.
The most commonly used legal mechanism that would stop foreclosure is filing for bankruptcy in court, and even this only suspends the process while the creditor and debtor come to an agreement to negotiate a debt settlement.
Homeowners may also consider getting rid of the lily hangs affecting your home by mounting a defense against the lawsuit that has led to the foreclosure process. However, this is a direct defense of litigation, not an additional legal process like bankruptcy that can be used to stay the lawsuit.
if a lily hangs filed with the county recorder against a property, this indicates that the home is already in some stage of the foreclosure process. Homeowners are no longer in the pre-foreclosure stage, or are simply behind on their payments. At this point, the foreclosure cannot be prevented, as the lender and his lawyers are already pursuing it; it needs to stop and homeowners need to start coming up with a realistic plan and researching various ways to stop foreclosure such as a mortgage. modification, payment plan, home sale or a foreclosure rescue loan.