Lis Pendens-What-why when where how

Discussion in 'Credit Talk' started by bbauer, Jun 23, 2001.

  1. bbauer

    bbauer Banned

    Lis Pendens is a very interesting subject. It is a legal procedure that has many applications in law and it can save the day for you when it comes to getting your home or other property taken away from you by a mortgage foreclosure, an IRS Tax Lien, a state tax lien or garnishment of property which is later to be sold at public auction.

    It can also be used in a way that seemingly works against you but can be in actuality to your benefit.

    Take the case of the bank or mortgage company who repossesses your house. Very often, they will file Lis Pendens against you because they think that you are basically bullet proof and so there is very little chance that a judgment and garnishment would produce any benefit for the creditor. But since the creditor often likes to take no chance that your ship might come in someday in which eventuality he could then go into court at any time prior to the end of the 5 year statute of limitations and file an actual judgement against you. After 5 years in most states, he must re-file or renew his Lis Pendens or he loses the right to re-file and also loses the right to file an actual judgment against you. So what it basically boils down to in practical use is to be much like a 5 year place-holder for the creditor. What usually happens is that by the time the 5 years is up, the creditor has forgotten all about you and the Lis Pendens is allowed to drop out.

    Another way that the Lis Pendens can be used by the debtor is to file his own Lis Pendens against the property just prior to the sheriff's sale. Doing so will place a cloud upon the title, and the sheriff must anounce the presence of the debtor's Lis Pendens publicly and loudly so that potential buyers will know that a cloud upon the title exists. The theory here is revealed with the simple question , "Who would buy and pay cash for a property upon which a cloud against the title exists?" The answer is, of course, nobody would want to buy a piece of property knowing in advance that it may in fact never be his free and clear.

    None of the above is meant to advise anyone that they should rush out and file a Lis Pendens against a property they had just lost control of without benefit of advice of counsel. If you think you have a legitimate reason why your property should not be sold at auction, go get a lawyer to help you so you do not make a grevious error.

    However, some people have filed Lis Pendens on vehicles that have been seized by the IRS and were being sold at auction.
    The auctioneer, having been forced to announce the existance of a Lis Pendens on the vehicle or property could then find no bidders so the sale was stopped. After some other arguments were entered against the IRS, they decided that what they were likely to get out of the confiscated property would not be worth it so long as there was a fight, so they simply returned the property.

    I have no idea how true the above paragraph might be, and I'd sure hate to see somebody believe it based on what I have heard from others and then run into serious legal problems. It's a story that I heard somewhere, not something that I know has ever happened. In the event that you think it might accidently work, go get a lawyer.

    The files will be on line sometime tonight and it will be 7 pages of actual court rulings and legal discussion about the process.

    When it is done, I will anounce it's completion in this thread so that you can click on the link and read the pages.
  2. MartysGirl

    MartysGirl Well-Known Member


    I am ready and waiting to find out more about this.
  3. bbauer

    bbauer Banned

    There are 7 pages in the report.
    I now have 3 of them ready to go up, but each one must be proof read to be sure it's right. The OCR program makes errors in the copy process and then the cut and paste process introduces other formatting problems, so each one has to be compared against the original and any mistakes corrected.

    I should get them all done tomorrow sometime and then I will post the URLs for the pages.

    Lis Pendens is really interesting stuff because of what you can do with it.

    I'll post the URLs on this thread when I get done with the proof reading.

    Then I'll be moving on to something else.

    Don't know what that will be yet, probably one of the other court cases I've been mentioning.

    I'm also going to want to post Judge Woods' ruling in Trinsey v Pagliaro. You may have seen that reference in one or two of the previous court cases I've already posted.

    There is only one sentence that has any real interest in Trinsey v Pagliaro, but it's still worth posting the entire decision.

    Where I am really going with all this stuff is to accumulate a whole bunch of cases and cites so that anyone who wants to go into court on a pro se litigant basis can simply go to my website and get just about all the research material one would likely need to do his own stuff in court.

    And since I'm not a lawyer and can't give legal advice nor charge a fee for the information, I'm just posting it up for free to anybody that wants it.

    Hope it does somebody some good.
  4. brad

    brad Well-Known Member

    Bill,if your still up I would be grateful if you could respond to my post ,get smart-brad,thanks.
  5. bbauer

    bbauer Banned

    Well, it's Sunday morning now. I didn't see the post yet, but I will answer when I do see it.
  6. bbauer

    bbauer Banned

    Which post are you talking about, Brad?
    You will have to help me find it.
  7. bbauer

    bbauer Banned

    You may be right, but I just went over there and I fail to see why he would be so anxious for me to answer that post.

    Maybe I'm just not up to anything so strenous this A.M.


    Maybe Brad will come in and clear it up for me.
  8. bbauer

    bbauer Banned

  9. curiouser

    curiouser Well-Known Member

    A lis pendens is simply a notice of pendiing litigation. I don't see this being a terribly useful strategy for a debtor. As long as the property holder has filed a bond for the value of the property (real or otherwise), a lis pendens is almost worthless. The buyer will either receive the property or the cash from the bond; the potential for loss to the buyer is nill. If your home is being foreclosed upon, as long as there is bond in place, the sale can go forward. Also, at least in California, judges are pretty quick to expunge lis pendens if they have been filed in bad faith, i.e. only filed to cloud title.
  10. Heckler

    Heckler Member

    Curiouser I completely agree, and have considered the source.

    I believe his point is sort of like having 1,600 websites that turn out to consist of â??subdirectoriesâ? (which donâ??t remotely constitute a URL). Ah, smoke & mirrorsâ?¦ Beautiful tools in the hands of a skilled magician, but clear stumbling blocks on amateur night.
  11. bbauer

    bbauer Banned

    Hey there Mr. Heck!

    Tell me something.

    Why is it that your DNS numbers are so close to those used by a certain Mr Anthony Villasenor???

    I'll bet you know him pretty well, don't you???

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