3rd DCA Also Holds Purchaser After Bank’s Lis Pendens Has No Standing To Intervene in Foreclosure Case

The 3rd DCA recently held, along with the 4th in De Sousa v. JP Morgan Chase, N.A., 170 So. 3d 928 (Fla. 4th DCA 2015), that when a purchaser of a property via deed or foreclosure sale takes title after the senior/first mortgage records its lis pendens the purchaser has no standing to contest the foreclosure case.

The court reasoned that the lis pendens the bank files with it’s foreclosure complaint is “to notify third parties of pending litigation and protect its proponents from intervening liens that could impair or extinguish claimed property rights.”  As such, the purchaser via deed from the owner, or association/junior mortgage foreclosure sale, takes title with notice of the pending bank foreclosure lawsuit.  Thus, the purchaser’s remedy is the right of redemption, or to pay the foreclosing bank what is owed, but not to intervene in the foreclosure case as a party and defend.

This should be a lesson to all investors to do your homework and obtain a title search and hire real estate counsel before buying property at HOA/condo auction, or taking a deed to property from an owner.  Once the damage is done, as shown above, the court system is not going to help remedy the investor’s lack of due diligence.

Full opinion here.

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