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Dave here at titlesearchcom and a FX title one of the terms that comes up quite a bit in the current foreclosure environment is Liz pendants it's a type of record we find in title records frequently it's two words first word is second word P en dens, and you may have seen this if you're a real estate professional quite frequently but a lot of times people will see it and not sure what it means well first it's a translation of a Latin term standing for litigation pending it's basically a notice saying that there's some type of controversy usually a court case usually a lawsuit on that property that's unresolved and the plaintiff or the grantee is putting notice on the title that look this property is somehow in controversy and until that's settled everybody in should be on notice that this property may have some claim against it in some states the lives pendent is replaced especially in foreclosures with a notice of default now that's different from other types of court cases because that's only a default in a foreclosure not other types of court cases, so you may not see Liz pennons in every state when a notice of default is you so Liz pennants it may be abbreviated as LP or is in terms of the document type when you're looking in an index so here's what it does first thing it does is secure the priority place of that claim so even though there's a mortgage in place the list pendants will secure the default in front of other liens that may come after it if it's a court case a lawsuit against the owner of the property the Liz pendants will also secure that potential judgment against other claims that come in after it and again title records are a race notice whoever gets there first with the records has priority, so you want to get that Liz pendant in even before the court case is settled so that it holds the place of that priority of potential lien against that property it puts the public on notice that something's happening it also tells potential purchasers lenders lien holders that the title is in question part of the claim of that property or the equity might not be completely secured in that owner if there's some judgment that's going to come against it later a lawsuit used to be by itself enough notice if it was in the civil court records, but a long time ago there were people who were buying properties who did not look for lawsuits against the owner bought a property come to find out later they had a claim against their property even though they weren't the subject of the lawsuit so many states form statutes that required recording of that Liz penance to hold that place on the property, so that's to protect a potential claimant or a judgment creditor it does not prevent a sale of that property the seller can sell the property they can transfer it to somebody else that's why it's important as a buyer to do good due diligence to see if there are list pendants because you can only sell a property if the buyer is willing and if you're willing...
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