Lis Pendens is an ancient legal phrase that translates literally from Latin to “suit pending.” In modern American real estate law, lis pendens refers to a notice that is filed whenever a property comes in dispute between two parties. This notice ensures that the property can't be sold to an unsuspecting third party, protecting both potential buyers and the plaintiff. A lis pendens notice does not mean that a property can't be sold, though it complicates the sale greatly as the new buyer becomes responsible for any claims on it.

In real estate law, the most common reason for filing a lis pendens is to initiate a foreclosure process against borrowers who have defaulted on their mortgages. From the time a lis pendens notice is filed until the property is resold at auction, the real estate is considered to be in pre-foreclosure. This period of time can be anywhere from a few months to a year depending on the state and the specifics of the case.

A notice of lis pendens is only relevant in states that require a judicial foreclosure process, meaning that any foreclosure must be approved by a judge to ensure that the mortgage and promissory note are legitimate. In states that do not require judicial foreclosure, a notice of default is issued instead.

A lis pendens foreclosure begins when the plaintiff files notice at the office where the deed of real estate is held. The lis pendens is added to the file so that the deed cannot change hands without the buyer knowing that the property is in pre-foreclosure.

Some real estate buyers actually seek out homes that are in pre-foreclosure, attempting to make a deal with the distressed owner to take control of the property at below its market value and then settle the debt with the mortgagee.