Lis Pendens: Little Nuances

Steve Zablocki, Senior Underwriting Counsel

The recording of a lis pendens in a foreclosure action does two things. First, by law, a lis pendens must be of record for at least 20 days before the entry of a judgment of foreclosure. [1]

Next, the lis pendens is recorded to close the door on additional defendants. It would be impossible for a creditor to ever clear title if there wasn’t a means to prevent future creditors’ claims from attaching.

The statute provides that from the time the lis pendens is recorded, any purchaser or encumbrancer whose conveyance comes after the lis pendens, is bound by the proceedings . . . to the same extent and in the same manner as if the purchaser or encumbrancer were a party thereto. [2]

Accordingly, once the lis pendens is recorded, any subsequent creditor’s interest is treated as if they are a defendant to the action. This applies to all judgments and lien and applies equally to the state and federal government liens.

From time to time, the question comes up whether there’s an issue if a creditor doesn’t appear on the caption on the lis pendens. The lis pendens statute does not require any mention of any parties. Rather, so long as the parties appear on CCAPs and have not been dismissed, then there are no issues. A lis pendens does not require a listing of creditor’s names to foreclose same.

If you have any lis pendens, foreclosure or other related questions, please contact your First American Underwriter.

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[1] Wis. Stat. §846.01(2)

[2] Wis. Stat. §840.10(1)(a)