Lis Pendens & How To Utilize The Info.
Can someione point me in the right direction on how to effectively utilize a Lis Pendens list? Any god material to read/ study? Any practial info would be appreciated ie: what are some of the "keys" to look for when going thru the Lis Pendens?
Thanks in advance for any pointers!!
B. Free
B_Free:
Nice to Meet You!
Lis Pendens (Legal-Action Pending) is the notice registered at the county courthouse to give publice notice of the date set for a Sheriff's (or Trustee) Sale.
It is the beginning stages of a foreclosure.(ergo the term pre-Foreclosure)...
I outline the process for GLEANING the IMPORTANT STUFF in my eBook "The PFL/FSBO Mktg. Bible" available here on TCI.
Anyway here's some FREE STUFF on Lis Pendens:
The Legal recording lists the Plaintiff's Name (Lender/Mortgage Co.'s Name) and their Attorney filing the action;
And it will almost always give you the following :
-ORIGINAL Date of the Mortgage and
-Month/Day/Year Of RECORDATION
(I use this information to search the County Assessor's records to get the CORRECT ADDRESS for the Borrower.)
I also use Yahoo People Search to locate Telephone #s and addresses as well.
Another IMPORTANT thing about the Recordation Date is it will tell you if it's a SR or JR lien (1st or 2nd or 3rd, etc.)
I catalogue my database as follows:
First and Last Name (Jr. Sr.)
Spouse (if listed)
Address (Both the PFL and the one I get from Yahoo People Search)
Recording Date
Interest Rate of the Mortgage Loan
(Good for weeding out homes w/High LTV and/or Higher than FMR-fair mkt rent)
Sales Date
(usually 4-6 Weeks away)
Redemption Expiration (6-12 Mo. in MI)
This is basically how I configure the information given in the Lis Pendens.
I hope this helps!
Derrick Ali
Thanks!!
Yes ur info does help. I am a newbie & I know that the Lis Pendens on the MLS can give me some very good info (as a starting point) for pre-forclosures. Ur response has given me more info & insight as to how to keep track of the props that I check into, etc.
Thanks again Derrick!!
B. Free
We've also started keeping track of FHA, VA and HUD loans. These loans are more likely to discount at auction.
I like your name B Free , I tell that to my kitty all the time (I think she's actually starting to understand me now...lol). Some definite good information there. I am also a newbie, but I was wondering on a few definitions (I'm really green...but hoping to ripen up very soon and have been scouring this website with its vast wealth of knowledge).
FMV=Fair Market Value
LTV=??
PFL=??
Redemption Expiration=??
Thanks for any and all help.
Best wishes and much success,
Teli
Nailet:
NICE to meet you too!
RE: FMV=Fair Market Value
LTV= Loan to Value
CLTV = Cumulative Loan to Value
PFL = Pre-Foreclosure
APV = Annual Percentage Rate paid on a mortgage loan.
GFE, TIL, HUD, RSPA, APV, CLTV, YSPand Appraisials = What a Good Mortgage Broker Gives (discloses) to All Loan Borrowers.
CRA = Community Reinvestment Act = Law that protects Consumer Homebuyers
when Mortgage Brokers fail to disclose any of the above.
MAV = Mutually Agree Value (future sales price you and the PFL Owner decide on.)
ROI = Return On Investment
IRR = Initial Rate of Return (% of cashflow POS or NEG relative to the downpayment you initially invest.
Redemption Expiration = Forclosure Owner's Right(time period) to Redeem their home.
OWC = Owner Will Carry
L/O = Lease With Option to Buy
LO = Loan Officer or Originator (Mortgage Broker)
Brkr = (RE or Loan Broker)
FSBO = For Sale By Owner
FSBO = Owner is a Private Party (req in CA)
AO = Agent Owned (not really a problem The Agent should be willing to discount 3% for you NOT bringing in another REA)
REA = Real Estate Agent
CAB = (CA$H @ the BANK) What You HOPE to Wind Up Withh After Working SMARTLY in REI!
These are just a few to help you get a start in building you REI VOCABULARY!
Best of Good Fortune To You All!
I hope this helps!
Derrick Ali
Thank you all for the input to this post and on this site. This is the first post that tells me some good information. Question do you have an excample of a contact letter you use? Thanks
James Dtreet:
Here's a TCI link for Great PreForeclosure Contacting Scripts:
http://www.thecreativeinvestor.com/ViewTopic782-18.html
I hope this helps!
Derrick Ali
Derrick I dont see this book anywhere:
" outline the process for GLEANING the IMPORTANT STUFF in my eBook "The PFL/FSBO Mktg. Bible" available here on TCI."
All I see is the marketing letter book. Do you have a link?
Derrick,
Thanks for the help.......
Adv HB:
To Order the PFL/FSBO Mktg Letter eBook
Go to:
http://www.thecreativeinvestor.com/Product107.html
I hope this helps!
Derrick Ali
Quote:IRR = Initial Rate of Return (% of cashflow POS or NEG relative to the downpayment you initially invest.DerrickAli,
Allow me to correct one of your abbreviation definitions.
IRR = Internal Rate of Return.
Internal Rate of Return is an investment analysis tool based on the projected cash flows generated from an initial investment.
The IRR is the discount rate needed to make the sum of the present values of future income streams equal to your initial investment.
2nd or 3rd Mistake This Millenium I think...
But then again this can be wrong...
THANKS for the Help DaveT!
Derrick
WOW DerrikAli! Thank you soooo much, that was very wonderful of you and thanks for not putting me out there for what seemed like such a silly question! You've certainly made my day and I've added all the definitions to my REI portfolio which seems to keep growing as I go along...ROFL! I have one other question about Lis Pendens.
I had a friend of mine contact me about one of her clients who is going into foreclosure, I looked over her documents and the United States of America and the IRS were listed as defendents...is this something I do not need to get myself involved in??? Not trying to get hauled off the Federal prison or anything...thanks for all the help everyone.
Best wishes,
Teli
Hi, you can find lis pendens reports online for many states. In MA we have a few reports. Do a google search for foreclosure reports (name of your state). Hope it helps. You need your time investing and not looking this info. up.