Key Takeaways

Key Takeaways A lis pendens is a public notice of pending litigation that creates a legal cloud on your property title, making traditional sales nearly impossible until resolved. Ann Arbor homeowners facing lis pendens filings have three main options: fight it in court, settle the underlying dispute, or work with specialized investors who handle these complex situations. While waiting for legal resolution, you continue paying carrying costs like taxes, insurance, and maintenance, which can add up to thousands annually on Ann Arbor properties. Prevention is key – address contractor disputes, family disagreements, and boundary issues quickly before they escalate to formal legal filings that cloud your property title.

Lis Pendens in Ann Arbor: What Property Owners Need to Know About This Legal Cloud

Look, I've been buying distressed properties across Michigan for over two decades, and I can tell you that few things scare homeowners more than finding out there's a lis pendens filed against their property. Just last month, I had an Ann Arbor homeowner call me in a panic because they discovered this legal filing when they tried to refinance their home near the University of Michigan campus.

The Latin term "lis pendens" literally means "lawsuit pending," and when it's filed against your property, it's like putting a giant legal stop sign on any sale or transfer. In Ann Arbor's competitive real estate market, where median home values have reached approximately $485,000 as of early 2026, having your equity tied up by one of these filings can be devastating.

What Exactly Is a Lis Pendens?

Here's the deal in plain English: a lis pendens is a public notice filed in the Washtenaw County Register of Deeds office that warns the world there's a pending lawsuit involving your property. It's not a judgment against you, but it's a legal cloud that can make your property virtually unsellable through traditional channels.

I've seen these filings for all kinds of reasons in Ann Arbor:

• Foreclosure proceedings (still common despite the market recovery)
• Divorce disputes over property division
• Boundary disputes between neighbors
• Construction lien lawsuits
• Probate disputes among heirs
• HOA assessment collection cases

The thing is, anyone can file a lis pendens if they have what appears to be a legitimate claim involving real estate. In Michigan, the bar isn't super high for getting one filed, but getting it removed? That's where things get tricky.

How Lis Pendens Affects Property Sales in Ann Arbor

Whether you're in the historic Old West Side, near campus in Burns Park, or out in the newer developments, a lis pendens filing creates the same problems everywhere. I've seen this play out hundreds of times with HOMESELL USA properties across Michigan.

First, no traditional buyer is going to touch your property. Their lender won't approve a mortgage on a property with an active lis pendens because the title isn't clear. Even cash buyers get nervous because they don't know what they might be inheriting.

Second, even if you find a buyer willing to wait, title companies won't insure the transaction until the lis pendens is resolved. And in Ann Arbor's fast-moving market, where good properties often get multiple offers, buyers aren't going to wait around for your legal issues to get sorted out.

I had a client in Ann Arbor's Eberwhite neighborhood who discovered a lis pendens from an old contractor dispute right when they needed to sell quickly for a job relocation. The traditional real estate agent basically said, "Call me when this gets resolved." That's not helpful when you need to move in 30 days.

Protecting Your Equity When Facing a Lis Pendens

Look, I'm not going to sugarcoat this – having a lis pendens filed against your Ann Arbor property is serious business. But it's not the end of the world, and there are ways to protect your equity even when you're dealing with this legal cloud.

Understanding Your Timeline

In Michigan, a lis pendens doesn't last forever, but it can feel like it. Generally, if the underlying lawsuit isn't actively prosecuted, you can petition the court to have it removed. But this takes time and legal fees – resources many homeowners don't have when they're already facing financial pressure.

The problem is that while you're fighting the lis pendens, your property value isn't sitting still. Ann Arbor's market has been relatively stable, but carrying costs keep adding up. Property taxes, insurance, maintenance – it all continues whether you can sell or not.

Your Options for Moving Forward

Here's what I tell every Ann Arbor homeowner facing a lis pendens situation:

Option 1: Fight it in court. If the lis pendens was filed frivolously or the underlying claim is bogus, you can petition to have it removed. You'll need a good real estate attorney, and in Ann Arbor, expect to pay $300-500 per hour for quality legal help. This could take months or even years.

Option 2: Settle the underlying dispute. Sometimes the fastest way through is to negotiate a settlement with whoever filed the lis pendens. This might cost money upfront, but it could be cheaper than years of legal fees.

Option 3: Work with an investor who understands these situations. This is where companies like HOMESELL USA come in. We've handled dozens of lis pendens situations across Michigan. We can often close on properties even with these legal clouds, either by working with all parties to resolve the issue at closing or by factoring the legal costs into our offer.

The Ann Arbor Market Reality

Here's something most people don't realize: even with Ann Arbor's strong market fundamentals – the University of Michigan providing economic stability, median household incomes around $65,000, and steady demand from both students and professionals – a lis pendens can wipe out your market advantages overnight.

I've seen beautiful homes in desirable Ann Arbor neighborhoods sit empty for years because of lis pendens issues. Meanwhile, the owners are stuck paying carrying costs and watching potential equity gains disappear. With property taxes in Washtenaw County averaging about $4,500 annually on a median-value home, plus insurance and maintenance, you're looking at substantial ongoing costs.

Working with HOMESELL USA on Lis Pendens Properties

I'll be straight with you – buying properties with lis pendens filings isn't for every investor. It requires experience, legal knowledge, and sometimes the patience to work through complex title issues. That's why most cash buyers and certainly all traditional buyers run the other direction.

But at HOMESELL USA, we've made it our specialty to help property owners in exactly these situations. We've closed on properties in Ann Arbor and across Michigan where traditional sales were impossible due to lis pendens filings. Sometimes we can resolve the underlying issue as part of the closing process. Other times, we factor the legal costs and timeline into our offer, giving you a way out without waiting years for court resolution.

Whether you're dealing with a foreclosure lis pendens, a family dispute, or a contractor's lien claim, we've probably seen something similar. The key is understanding all your options before you spend years and thousands of dollars in legal fees.

Red Flags and Prevention

The best time to deal with a lis pendens is before it gets filed. I always tell Ann Arbor homeowners to take these warning signs seriously:

• Threats of legal action from contractors, neighbors, or family members
• Unpaid HOA assessments or special assessments
• Boundary disputes that aren't getting resolved
• Divorce proceedings involving real estate
• Probate disputes among heirs

If you're facing any of these situations, address them quickly before they escalate to a lis pendens filing. Once that document is recorded with Washtenaw County, your options become much more limited and expensive.

Look, I've been helping Michigan homeowners work through these complex property situations for years, and I can tell you that there's almost always a solution. It might not be the solution you originally wanted, but there's usually a path forward that protects at least some of your equity and gets you out from under the legal cloud.

If you're dealing with a lis pendens on your Ann Arbor property, or if you're worried one might be coming, give Uncle Charles a call. No pressure, no judgment – just straight answers about your options. Whether you end up working with HOMESELL USA or pursuing another path, I'll make sure you understand exactly what you're facing and how to protect yourself.

Frequently Asked Questions

Frequently Asked Questions

Can I sell my Ann Arbor house if there's a lis pendens filed against it?

Traditional sales are nearly impossible with an active lis pendens because title companies won't insure the transaction and lenders won't approve mortgages. However, experienced investors like HOMESELL USA can sometimes purchase properties even with lis pendens filings by working through the legal issues as part of the closing process.

How long does a lis pendens stay on my property in Michigan?

A lis pendens in Michigan typically remains in effect until the underlying lawsuit is resolved, dismissed, or withdrawn. If the lawsuit isn't actively prosecuted, you may petition the court for removal, but this process can take several months and requires legal representation.

Who can file a lis pendens against my Ann Arbor property?

Anyone with a legal claim involving your real estate can potentially file a lis pendens, including contractors seeking payment, neighbors in boundary disputes, family members in inheritance disputes, HOAs collecting assessments, or lenders in foreclosure proceedings. The filing requirements in Michigan are relatively broad.

Will a lis pendens affect my property value in Ann Arbor?

While a lis pendens doesn't directly change your property's market value, it makes the property essentially unmarketable through traditional channels. This means you can't access your equity or benefit from market appreciation while the filing remains active, effectively diminishing your financial position.

What's the difference between a lis pendens and a lien on my property?

A lien is a claim for payment secured by your property, while a lis pendens is simply notice of pending litigation involving your property. Liens directly affect ownership and must be paid at closing, while a lis pendens creates a cloud on title that prevents most transactions until the underlying legal matter is resolved.