I'm in the process of purchasing a Foreclosure home in California and have entered into contract with the bank. We were days from closing and we were just notified that there is a Lis Pendens on the property. A clear title was pulled about a month ago in Southern California, but when title pulled in our northern California county the Lis Pendens was found.

Any advise on how we should proceed? Should we wait it out and see if the Lis Pendens gets removed? If it does get removed can the previous owner of the home ever come back and put another Lis Pendens on the home? Should I contact an attorney?

Thank you in advance for any insite!

If you were just days from Closing, surely you'd have already retained an Attorney to protect your interests! No ?

We dont use attorneys for closing in CA. Everything is handled thu escrow. If the seller cant deliver clear and marketable title, it wont close. The title insurance company and your lender wont allow it.

The onus is on the seller to clear up any clouds on title. If you want to spend the money a RE attorney, by all means. They dont come cheap.

Id suggest having your agent contact the title company to see what the plan is to clear the lien.

The lien should have been wiped out when the bank foreclosed, assuming this is bank owned.

Does that hold true even for CASH transactions? Like it's by Law?

Title Companies have made some inroads here of late (they might handle 10 or 15% of Conveyances max); but as fair and impartial as they might be, someone usually has their own representation . . . . typically the Seller. And the Buyer is responsible for compensating the Title Company, via the Lender (their actual Client).

Many more sophisticated Buyers still retain their own Counsel

Maybe that's why Vermont still has the largest number of Attorneys in the Nation, on a per capita basis, with the exception of Washington D.C.

There isnt a law that says you cant have an attorney rep you. Its just how its done here. RE lawyers are very expensive here and would end up ordering a profile from a title co anyway. We dont have lawyers who are in the business of title examination.

Escrow and title fees are split, tne breakdown is a function of local tradition.

Maybe its because CA is a statutory rather than common law jurisdiction, everything is codified.

The Lis Pendens must be released before title can transfer. If the original person who recorded the Lis Pendens cannot be found, a judge must sign an order to release it or you cannot get clear title. Unfortuneately the fine for filing a frivilous Lis Penden is insignificant, I think it is like $400.
If a cash deal, you could record a new deed, take title, but no title insurance company will touch it.
Had this exact issue a couple years ago.
No legal advise intended. (I got it released and was good to go, but lots of grief.)