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Lis Pendens Slowed Down in Seven Counties

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By : John Cutts    99 or more times read
The filing of lis pendens slowed down in seven of eight counties surveyed by real estate research firm Default Research Inc. in August.

Lis pendens is a written document notifying the property owner and the court that the property owner has failed to make payments within a certain period. It is the first stage of the foreclosure process in judicial foreclosure states. It is called notice of default in non-judicial foreclosure states.

The lis pendens document includes a legal description of the targeted property and also involves the property in the lawsuit.

In some publications, lis pendens is also called pre-foreclosure because it precedes foreclosure. If the defendant is unable to resolve the pending lawsuit, the property described in the lis pendens is sold by the trustee in a foreclosure auction.

In the study conducted by Default Research, the number of lis pendens filed in the eight counties dropped in August by an average of 15 percent compared to July. The counties which had the biggest drop rates were Riverside, California and Cook County, which encompasses Chicago. Pre-foreclosures fell by nearly 41 percent in Riverside while pre-foreclosures dropped by more than 31 percent in Cook County.

The county which had the smallest drop rate in lis pendens compared to July was Miami-Dade County, which experienced only 0.27-percent drop. Based on foreclosure results from other research firms, Miami-Dade is a big contributor to the high ranking of Florida in foreclosure rate charts in the U.S.

Among the eight counties, the only one which experienced an increase in lis pendens compared to July is Maricopa. Its pre-foreclosure filings climbed up by 2.44 percent.

Los Angeles County experienced a decrease of 17.83 percent; Orange, 16 percent; San Diego, 15.58 percent; and San Bernardino, 9.86 percent.

In addition, Default Research noted that the number of trustee sale notices in California decreased in August, but its default notices comprised almost 85 percent of all pre-foreclosure listings of the firm throughout the state.

The research firm also said that inventories are declining in many major metropolitan markets and that confidence in the residential market is returning. It added that median sales prices have not started their upward direction in most markets, but it expects home prices to increase significantly before the year ends.

Nonetheless, many housing analysts expect that the number of lis pendens will continue to increase in many areas of the country because of unemployment and reduced household income.

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