What is a lis pendens?
A lis pendens is a recorded legal notice stating that a lawsuit, typically a foreclosure action, has been filed against a property.
When a lender files a foreclosure lawsuit, the lender typically records a lis pendens (Latin for "suit pending") in the county clerk's office in the county where the property is located. This notice informs the public, title companies, and potential buyers that litigation over the property's ownership or lien position is actively underway.
In Indianapolis Metro foreclosure cases, the lis pendens serves as constructive notice that the property is subject to a court claim. Its presence on the public record creates what title companies call a "cloud on title." This means no clean title can be transferred, and the property cannot be sold, refinanced, or used as collateral until the litigation is resolved or the lis pendens is formally removed.
For a homeowner facing foreclosure, a lis pendens record makes the property essentially unmarketable. Even if the owner wanted to sell to avoid foreclosure, potential buyers and their lenders will refuse to close because the property's title remains encumbered by the pending lawsuit. The lis pendens remains in effect throughout the foreclosure process and is only removed after the case concludes (whether by judgment, dismissal, or settlement) and a release is recorded. Issues involving recorded claims against property are handled by attorneys specializing in real estate title issues.