Legal Question in Real Estate Law in Oregon

Does recorded 2nd TD supercede previously filed Lis Pendens?

Please help. A lis pendens was put on my property for a real estate matter in 2003. In April 2005, a lender read the complaint & agreed to a 2nd TD on the property anyway (as I have enough equity), & obtained title insurance, which we believe excluded the lis pendens. I signed a doc in the closing papers that I would hire counsel & defend the 2nd TD lender, if need be in this lis pendens action. A few things have happened since then. To our complete surprise, we lost the case the lis pendens was for. We await the judge's written decision (which we will object to, & we�re considering filing an appeal), & thereafter, a judgment will be rendered. If the lis pendens becomes a lien, then doesn't it supersede the 2nd TD? I would then have to fight not only to protect myself, but also to protect the 2nd TD, to be sure there's enough equity to cover it. Oddly, I double checked & found the title co. made a mistake, & this recent 2nd TD was not recorded right. It looks like they just recorded to be notified of any default on the property, & recorded that twice. If that defect makes it so the lien which would've recorded AFTER in 3rd position, moves past the new loan into 2nd position - isn't this the responsibility of title co.?


Asked on 6/14/05, 12:00 am

1 Answer from Attorneys

Susan Burns Law Office of Susan Ford Burns

Re: Does recorded 2nd TD supercede previously filed Lis Pendens?

You need an attorney NOW. If you were represented in the lis pendens case, you should be discussing this issue with that attorney. If you were not represented, you need to hire an attorney to evaluate your situation and the possibility of appeal.

Regardless of what the title company did in the recording of the 2nd trust deed, you still have the responsiblity to indeminify and defend that lender if the lis pendens claimant is entitled to collect a judgment against you. You will need to hire an attorney to do that.

From the information you give, it appears that the lis pendens was recorded before the 2nd trust deed, therefore it is in front of the 2nd trust deed and the lis pendens claimant would collect before the 2nd trust deed.

Since you don't say what the lis pendens was about, I cannot tell whether there might be further problems, which could arise if the lis pendens claimant is getting a portion of or all of the property.

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Answered on 6/14/05, 9:59 am


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