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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] LP is notice, notice not "wiped out" Posted by Kristine-CA on April 16, 2009 at 8:13 PM In Reply to: Re: They sure do... posted by jmac on April 16, 2009 at 6:12 PM My understanding and experience is that an LP isn't wiped out. It's notice, not a lien, not a judgement. A trustee's sale or other transfer doesn't make the notice go away. If a title insurer suspects validity to the claim (as in risk--they're in the insurance biz), they will either refuse to insure and/or ask that it be released. An LP has to be considered, regardless of how ridiculous the claim. Unless you don't care about re-sale and have no need for refinance. : I would say 90% of the time thats right, they get wiped off, but not always, it may be worth it to pull the lis pendens and read the basis of the filing. : I just had one where I held the note, foreclosed, the trustee sale did not wipe off a junior lis pendens filed after my DOT was recorded, because the lis pendens was disputing whether the prior owner had been properly conveyed title, years prior to my recorded DOT. No title company would insure it until I went back to the plaintiff and had the subject property removed from the claim. It took many months to resolve this issue, and was a real pain. I also filed a claim with my title insurance company (I had an ALTA lenders policy), of course they first stonewalled, then stalled, then asked for pounds of paperwork to substantiate my claim. They sure dont pay claims nearly as easily as they collect policy premiums. : : : Brian, : : No worries...because a lis pendens is not a lien! : : It's just a recorded notice that a legal matter involving the real property is currently being litigated in a local court. If you take the time to read the main paragraph within the notice it will almost always turn out to be an argument over ownership of the property. : : And since ownership issues are always the most junior interest to any property, then whoever is ultimately determined to be the owner is subject to being wiped off title by the ongoing foreclosure of any lender's lien. : : : : -------Ward : : : : ============ : : : : : Hi Ward, Rick & Pros, : : : Does foreclosing a senior lien wipe off a Lis Pendens? I have a case that senior lien is going to trustee sale tomorrow, but I found a Lis Pendens recorded later than the senior lien against this property. : : : Thanks in advance, : : : Brain Follow Ups: CA is community Property State so.... Bill H 11:12 PM, 04/16/09 (3) Re: CA is community Property State so.... Kristine-CA 1:26 PM, 04/17/09 (2) I agree... Rick, the Probate Guy 2:40 PM, 04/17/09 (1) frivolous LPs Kristine-CA 6:28 PM, 04/17/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : My understanding and experience is that an LP isn't wiped out. It's notice, not a lien, not a judgement. A trustee's sale or other transfer doesn't make the notice go away. If a title insurer suspects validity to the claim (as in risk--they're in the insurance biz), they will either refuse to insure and/or ask that it be released. An LP has to be considered, regardless of how ridiculous the claim. Unless you don't care about re-sale and have no need for refinance. : : I would say 90% of the time thats right, they get wiped off, but not always, it may be worth it to pull the lis pendens and read the basis of the filing. : : I just had one where I held the note, foreclosed, the trustee sale did not wipe off a junior lis pendens filed after my DOT was recorded, because the lis pendens was disputing whether the prior owner had been properly conveyed title, years prior to my recorded DOT. No title company would insure it until I went back to the plaintiff and had the subject property removed from the claim. It took many months to resolve this issue, and was a real pain. I also filed a claim with my title insurance company (I had an ALTA lenders policy), of course they first stonewalled, then stalled, then asked for pounds of paperwork to substantiate my claim. They sure dont pay claims nearly as easily as they collect policy premiums. : : : : : Brian, : : : No worries...because a lis pendens is not a lien! : : : It's just a recorded notice that a legal matter involving the real property is currently being litigated in a local court. If you take the time to read the main paragraph within the notice it will almost always turn out to be an argument over ownership of the property. : : : And since ownership issues are always the most junior interest to any property, then whoever is ultimately determined to be the owner is subject to being wiped off title by the ongoing foreclosure of any lender's lien. : : : : : : -------Ward : : : : : : ============ : : : : : : : Hi Ward, Rick & Pros, : : : : Does foreclosing a senior lien wipe off a Lis Pendens? I have a case that senior lien is going to trustee sale tomorrow, but I found a Lis Pendens recorded later than the senior lien against this property. : : : : Thanks in advance, : : : : Brain [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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