First let me start off by saying some sites where these listings are have great info. For instance RealtyTrac, there is a reason they have become the leading source of foreclosure data in the country. That being said, the interpretation of their info by the general public is terrible. RealtyTrac as an example has a “learn” button on their site that has some great articles and a good FAQ that explains what NOD, Lis Pendens, and other foreclosure terms mean. Unfortunately, I suspect these articles and FAQ’s go very much unread by a large portion of their visitors. Plus they syndicate their data to several listing websites (like Trulia) where many people confuse their Lis Pendens information for actual homes for sale.
So for everyone out there that gets excited when they see a “listing” for a lake front, 5 bedroom, 3 bath, 3,000 square foot home in Windermere for $40,000 make sure to look at the listing description. If the words Lis Pendens are in there, know that the property is NOT for sale at 40K! Just because there is a Lis Pendens for 40K doesn’t mean that is all that is owed on a property or that the bank will be selling the property for pennies of what it’s worth just because there is a small mortgage on it.
My usual answer to questions involving these “Listings”: I am sorry, but the listing you are referencing is not actually for sale (or is for sale for a different amount). The information you pulled is likely just a public court record of pending foreclosure action and the amount indicated is simply the amount owed to the mortgage holder. This amount has little to no bearing on what the home may eventually sell for when/if it becomes available. If it’s too good to be true IT LIKELY IS!
