Release of Lis Pendens Bond
If you're trying to sell a home in foreclosure, you (the defendant) may be blocked from selling that property because of a motion filed by the plaintiff called Lis Pendens. This motion designates your property listing as "under litigation," which makes it exceedingly difficult to sell. Fortunately, you may be able to have this designation removed, but first you need to secure the right kind of bond.
What is a Release of Lis Pendens Bond?
Before a judge agrees to lift the Lis Pendens designation on a property title, the defendant must obtain a release of Lis Pendens bond. Surety bonds hold the bonded party financially accountable if the judge rules against them in civil litigation. When that happens and the defendant does not pay court-ordered judgements to the plaintiff, the plaintiff has the right to file a claim against the bond seeking financial compensation.
How does a Release of Lis Pendens Surety Bond work?
Judges must weigh the interests of the plaintiff against those of the defendant since both have a stake in the property under dispute. Once the defendant files a release of Lis Pendens, it's up to the defendant to prove why the Lis Pendens designation should remain in place. If the judge decides the defendant has the more compelling case, he or she will allow the defendant to continue listing the property without the "under litigation" tag attached to it. However, if the judge rules against the defendant, the plaintiff may file a claim to recoup court costs, attorney's fees, and other associated expenses if the defendant doesn't pay as ordered.
Who should get a Release of Lis Pendens Surety Bond?
Anyone eager to sell a property under litigation who is allowed to do so by the state. Filing a release of Lis Pendens motion isn't the only way to get a negative designation removed from a title, but it's easier than many of the alternatives. As soon as you know this option exists for you, contact a company like Viking Bond Service that can help you secure a bond almost immediately.
Who are the parties involved in a Release of Lis Pendens Bond?
- Principal - The bonded party, also the defendant in the civil case.
- Obligee - The bond beneficiary, also the plaintiff in the civil case.
- Surety - The bond company that investigates claims and compensates obligees when claims prove valid.
How much does a Release of Lis Pendens Surety Bond cost?
Courts determine how large the bond must be based on state statutes and the facts of the case. To obtain a bond, the principal must pay a premium equal to a small percentage of the bond. They must also put up enough collateral – which may include cash or property - to cover the value of the bond.
How are claims handled for Release of Lis Pendens Bonds?
A surety will only settle valid claims. In that instance, the surety incurs expenses settling the claim and any collateral attached to the bond may be forfeited. The principal may also have to pay interest and fees to the surety. By holding principals (defendants) financially responsible, bonds keep them from filing frivolous motions for Release of Lis Pendens.
How long a Release of Lis Pendens Surety Bond may take effect
Typically, the release lasts for as long as the property in question is under litigation. If the courts require a specific duration, they will make it known when establishing the terms for the bond.
How to apply for a Release of Lis Pendens Surety Bond?
Applying for bonds doesn't have to be confusing or time-consuming as long you work with a top surety brokerage like Viking Bond Service. You will need to complete a standard bond application with information about your credit and financial history. You will also need to turn over documentation related to the case, including the court order calling for the bond.
Viking Bond Service - Experts in Court Bonds
Don't let your property languish under a Lis Pendens motion. Rely on Viking Bond Service to get you a bond that meets all the courts mandates in all 50 states. If you want to get a bond ASAP, fill out our easy online bond application immediately. If you need more information first, connect with our team through the contact form on this page, or call us at 888-278-7389.
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