The Basics of a Pendens Lis Certificate

A list of lenders, also known as an order of court or judgment of the court, is a legal proceeding involving the title or interest in real property. In this type of legal document, the court issued a list, agreeing to the parties to the action. If the agreement goes unpaid, the property builder contracted to construct a home on the land, for instance, can use a list of lenders to take over ownership of the property and resell the house. This action would prevent the transfer of the property to the builder's new buyer.

Property owners must notify the other party in a list of lenders who want to take over the property if the contract is agreed upon. The party seeking the release of the property list must send a certified letter to the other party notifying them that they have filed the lawsuit to recover their lien against the property owner. If the owner does not respond, the other party has thirty days to make right on the debt by sending another certified letter.

If the list of pendens ordered by the court is valid, the property can be reclaimed by the owner within thirty days. The list of the property will be attached to the deed of trust. The property list will become due and payable on the day that is stated in the notice of lis. If no action is taken, the court will issue a default judgment and sell it under public auction.

The list of the property is separate from the lien of the mortgage. It is only applied to the mortgage’s lien will still be valid if the foreclosure process has been completed and the mortgage is satisfied. The list cannot be changed unless the owner posts a bond with the county. In this case, the owner will lose the right to redeem the property during the foreclosure.

There are few ways to get the right to redeem the property during the foreclosure sale:

1. If the owners can show the lis certificate and if there is a clear title from another mortgage.
2. If there is no lis certificate, the mortgage holder has the option to produce the original list to prove ownership of the property before a judge.
3. If there is a clear title, the lender may choose to produce the original plan for the property’s redemption in the foreclosure auction.
4. If the property is in foreclosure, this certificate is not required for this option.

The redemption of the property can only begin once the lender produces the listed certificate. If there is no list, the owner can redeem the property by paying the balance of the mortgage plus costs. If the list shows that the owner is legally responsible for the mortgage payment, then the lender will be able to resell the property at auction. It is widespread for the mortgage holder to pay down the loan balance without producing a list, so this option is rarely used.

One smart way of redemption in a property tax list of Pendens is to pay the property taxes simply. If this is the best course of action, the owner should calculate how much they can save because of this list. Many states require the owner to pay off the first year's property taxes before issuing a second list of Pendens. So this is an important consideration when choosing this method of redemption.

If the property taxes are not paid, the owner can still redeem the list by making some hard efforts. One of the most critical considerations for redemption is the proximity of the list to the owner's home. If the list is too far away and is not easily accessible by the owner's guests, the owner may want to consider moving the property. Another option to consider redemption is to pay off the mortgage and then sell it within the next two years. This has proven to be a very effective method of his redemption in many states