Yes, you can sell a house with a lis pendens in Florida. A lis pendens is one of the most misunderstood documents in Florida real estate — many homeowners believe it freezes their property or prevents any sale. That is not what a lis pendens does. It is a public notice that a lawsuit affecting the property is pending, and it does not remove your ownership rights or your ability to sell.
If you are weighing your options, selling before foreclosure explains the full range of strategies available to you. This post focuses specifically on how the lis pendens affects the sale process and what you, your agent, and your title company need to do to close successfully.
What Exactly Is a Lis Pendens?
Under Florida Statute 48.23, a lis pendens (Latin for “suit pending”) is a recorded notice in the county where the property is located. It tells the world that a lawsuit involving the property has been filed. In a foreclosure, the lis pendens is filed at the same time as the foreclosure complaint.
Here is what a lis pendens is not:
- Not a lien. A lis pendens does not create a financial claim against the property. The mortgage itself is the lien.
- Not a judgment. A lis pendens is filed at the beginning of the lawsuit, not at the end. No court has ruled on anything yet.
- Not a transfer of ownership. You still own the property and have every right to sell it.
- Not a restriction on sale. There is no Florida law preventing the sale of property with an active lis pendens.
The purpose of the lis pendens is constructive notice. It tells potential buyers and title companies that anyone who acquires an interest in the property takes it subject to the outcome of the pending lawsuit. This sounds scary, but in practice, it is resolved at closing when the mortgage is paid off.
How Selling With a Lis Pendens Works in Practice
The sale process with a lis pendens is similar to a normal sale, with a few additional steps handled by the title company. Here is the flow:
- You list the home. Your REALTOR markets the property on the MLS and through other channels, disclosing the lis pendens status.
- A buyer makes an offer. The buyer is aware of the lis pendens and understands it will be resolved at closing.
- The title company orders a title search. The search reveals the lis pendens and all other encumbrances. The title company creates a list of requirements to clear title.
- The title company requests a payoff statement. The lender provides the exact amount needed to satisfy the debt, including all fees and costs.
- Closing happens. The title company distributes the sale proceeds to pay off the mortgage. The lender receives the payoff and authorizes release of the lis pendens.
- The lis pendens is released.The lender's attorney files a release of lis pendens with the county and a voluntary dismissal of the foreclosure case. Clean title transfers to the buyer.
For title companies experienced in foreclosure transactions, this is routine. They know how to coordinate with lender loss mitigation departments, obtain timely payoff statements, and ensure all the documentation is in order for a clean closing.
Cash Buyers vs. Financed Buyers: What the Lis Pendens Means for Each
The lis pendens affects different buyer types differently. Understanding this helps you market your home to the right audience and set realistic expectations.
Cash Buyers
Cash buyers — investors, flippers, and buy-and-hold landlords — are generally unfazed by a lis pendens. They understand it is a standard part of the foreclosure process and will be resolved at closing. Many cash buyers specifically seek properties with lis pendens filings because they know the seller is motivated.
Advantages of cash buyers when selling with a lis pendens:
- No lender involved on the buyer side to question the lis pendens
- No appraisal required (which could be complicated by the pending action)
- Faster closing (7-14 days) that fits within foreclosure timelines
- Experience with distressed property transactions
Financed (Mortgage) Buyers
Traditional buyers using mortgage financing can purchase a property with a lis pendens, but there are additional considerations. The buyer's lender will review the title search and may have questions about the lis pendens. Most mortgage lenders will proceed as long as the title company confirms the lis pendens will be released at closing and clean title will transfer.
Potential complications with financed buyers:
- Underwriting delays.The buyer's lender may require additional documentation or assurances from the title company.
- Appraisal concerns. Appraisers may note the lis pendens as a factor, though it should not affect the appraised value.
- Buyer anxiety. Traditional buyers may not understand what a lis pendens is and become nervous. Clear communication from your agent and their agent is essential.
- Longer timeline. Financed sales take 30 to 45 days, which may not align with your foreclosure deadlines.
If your foreclosure timeline allows 45+ days, a financed buyer is viable and may offer a higher price. If you have less time, target cash buyers for certainty and speed.
Short Sales With a Lis Pendens
If you owe more than your home is worth, you need a short sale — and having a lis pendens does not prevent one. In fact, most short sales in Florida occur with an active lis pendens because the foreclosure filing is what prompts many homeowners to explore the short sale option.
The short sale process with a lis pendens looks like this:
- List the property and receive an offer at current market value
- Submit the offer to your lender with a short sale package (financial hardship documentation)
- The lender reviews the package and either approves, counters, or denies the short sale
- If approved, the lender provides a short sale approval letter with terms and a closing deadline
- Close the sale per the approval terms — the lender releases the lis pendens and may waive the deficiency
Short sale approval typically takes 60 to 120 days. During this time, the foreclosure case continues unless the lender agrees to pause it. Your attorney should communicate with the lender's attorney about the pending short sale to avoid the auction being scheduled before approval comes through.
The Title Company's Role Is Everything
When selling with a lis pendens, your title company is the linchpin of the transaction. An experienced foreclosure title company knows how to:
- Order and interpret title searches with lis pendens and other foreclosure-related filings
- Request payoff statements from mortgage servicers (and follow up when they are slow)
- Coordinate the simultaneous payoff and lis pendens release at closing
- Handle situations where multiple liens exist (second mortgages, HOA liens, tax liens)
- Issue title insurance to the buyer, ensuring they receive clean title despite the prior lis pendens
Do not use a title company that has never handled a foreclosure closing. Ask directly: “How many closings with active lis pendens have you handled in the past year?” If the answer is none or very few, find a different title company.
What Buyers Need to Know About Purchasing With a Lis Pendens
If you are marketing your home to buyers, they will have questions. Here is what buyers should understand:
- The lis pendens goes away at closing. When the mortgage is paid off, the lender has no basis to continue the lawsuit. The lis pendens is released and the case is dismissed.
- Title insurance protects the buyer.The title company will issue an owner's title insurance policy ensuring the buyer has clean title.
- The foreclosure case is the seller's problem, not the buyer's. The buyer is purchasing the property free and clear of the lis pendens once the mortgage is satisfied at closing.
- No risk to the buyer if closing happens properly. The title company ensures all obligations are met before recording the deed.
How to Market a Home With a Lis Pendens
Barrett Henry, a REALTOR with 23+ years of real estate experience and Broker Associate at REMAX Collective, recommends the following approach for marketing a home with an active lis pendens:
- Disclose early. Include the lis pendens status in agent remarks on the MLS listing. This filters out buyers who will not be comfortable and attracts those who will.
- Price to sell. A property with a lis pendens should be priced at or slightly below market value to generate quick interest.
- Target the right buyers. Market to cash buyers and investors who understand lis pendens transactions, in addition to traditional MLS exposure.
- Have the title company ready. Choose the title company before listing so there is no delay when an offer comes in.
- Prepare a buyer info sheet. Create a one-page document explaining the lis pendens, how it will be resolved at closing, and that the title company will issue title insurance.
Dealing with a lis pendens and considering a sale? Reach out for a free consultation — we will walk you through your options, timeline, and the fastest path to getting the lis pendens resolved through a sale.
