Key Takeaways

Key Takeaways A lis pendens creates a legal cloud that makes your Troy home nearly impossible to sell to traditional buyers — most lenders won't finance properties with active litigation Waiting for the lawsuit to resolve often costs more than selling at a discount — carrying costs of $2,500+ per month plus legal fees add up fast in Troy's market Cash investors who specialize in legal complications can close quickly — often within 2-4 weeks, stopping the financial bleeding Time works against you with a lis pendens — every month you wait typically reduces your net proceeds due to ongoing expenses and legal costs

Lis Pendens in Troy, Michigan: What Homeowners Need to Know in 2026

Look, I've been buying houses in Michigan for over two decades, and I can tell you that Troy homeowners are dealing with more legal complications than ever before. Just last week, I had a homeowner from Troy Hills call me in a panic because they found out there was a lis pendens filed against their property. They had no idea what it meant, but they knew it wasn't good news.

Here's the deal — a lis pendens is like a big red flag planted on your property that tells the whole world there's a legal fight going on. And in Troy's competitive market, where home values have been climbing steadily, that flag can cost you serious money if you don't handle it right.

What Exactly Is a Lis Pendens?

Let me break this down in plain English. "Lis pendens" is Latin for "lawsuit pending." When someone files a lis pendens against your property, they're basically putting a legal cloud over your title that says, "Hey, we're fighting about this property in court, so nobody should buy it until we figure this out."

I've seen this happen with all kinds of situations in Troy:

• Divorce proceedings where spouses are fighting over the family home
• Business partnership disputes involving commercial properties on Big Beaver Road
• Contractor liens that escalated to lawsuits
• Boundary disputes with neighbors
• Mortgage companies starting foreclosure proceedings
• Estate battles in probate court

The thing is, once that lis pendens gets filed with Oakland County, it becomes public record. Any buyer who does their homework is going to see it, and most of them are going to run the other way.

How Lis Pendens Affects Your Ability to Sell

Here's where it gets real for Troy homeowners. With the median home price in Troy sitting around $385,000 as of early 2026 — up about 6% from last year — you've got significant equity at stake. But a lis pendens can make that equity practically untouchable.

I had a situation just a few months ago with a homeowner in Troy's Northfield Hills subdivision. Beautiful home, probably worth $450,000 in today's market. But there was a lis pendens from a contractor dispute that had been sitting there for eight months. Three different buyers walked away once they saw it. The homeowner was stuck.

Here's what happens when you try to sell with a lis pendens:

Traditional Buyers Get Scared

Most retail buyers — the folks who are going to live in your house — won't touch a property with active litigation. Their lenders definitely won't. FHA, VA, conventional mortgages — they all have rules about clear title, and a lis pendens is the opposite of clear.

Your Property Sits on the Market

I've seen beautiful homes in Troy sit for months because of a lis pendens. Every day that house sits empty, you're paying property taxes, insurance, maybe a mortgage payment, utilities — it adds up fast. In Troy, we're talking about property taxes of around $8,000-12,000 per year on an average home.

You Lose Negotiating Power

The few buyers who might consider a property with a lis pendens know they're taking a risk. They're going to lowball you because of that risk. I've seen homeowners forced to accept offers $30,000-50,000 below market value just to get out from under the situation.

Troy's Market Reality in 2026

Let me give you some context about what's happening in Troy right now. The housing market here has been relatively stable compared to some other Michigan cities, but we're seeing some interesting trends:

Days on market have increased slightly to about 35-40 days for clean properties, up from the 20-25 day average we saw during the pandemic boom. That means even properties without problems are taking longer to sell. Add a lis pendens to the mix, and you could be looking at six months or more.

Troy's diverse economy — with the automotive tech corridor and proximity to Detroit's recovery — has kept home values steady. But legal complications can wipe out those gains fast.

Protecting Your Equity

Look, if you're facing a lis pendens situation, you've got to think strategically about protecting your equity. I've helped dozens of Troy homeowners navigate this mess, and here's what I've learned:

Act Fast

Time is not your friend when there's a lis pendens on your property. Every month that passes, you're bleeding money on carrying costs. In Troy, we're talking about $2,000-3,000 per month in total holding costs on an average home.

Understand Your Legal Position

Get a real attorney — not your neighbor's cousin who "knows about real estate." You need someone who understands Michigan property law and can explain your options. Sometimes you can get a lis pendens dismissed if it was filed improperly.

Consider Your Exit Strategy

Here's where companies like HOMESELL USA come in. We buy properties with all kinds of legal complications, including active lis pendens situations. We're not scared of the paperwork or the court dates. We factor the risk into our offer, but we can close fast and get you out of the situation.

I bought a property in Troy last year where the owner had a lis pendens from a business partnership dispute. The lawsuit had been dragging on for 14 months. We closed in three weeks and let the attorneys sort out the details. The homeowner walked away with $180,000 in cash instead of continuing to pay legal fees and carrying costs.

The Hidden Costs of Waiting

I see homeowners make the same mistake over and over — they think they should wait for the lawsuit to resolve before they sell. But here's the math that might surprise you:

Let's say you've got a house in Troy worth $400,000 with a lis pendens. Your carrying costs are $2,500 per month. Your legal fees are running $500 per month. If the lawsuit takes 18 months to resolve (which is pretty typical), you're out $54,000 in carrying costs and legal fees.

Now, maybe you could sell to an investor today for $340,000 cash. That's a $60,000 discount from market value. But when you factor in the $54,000 you'd spend waiting, plus the risk that you might lose the lawsuit entirely, that cash offer starts looking pretty smart.

What HOMESELL USA Can Do

We specialize in exactly these kinds of complicated situations. We've bought dozens of properties in Oakland County with lis pendens issues. Here's how it works:

We evaluate the property and the legal situation. We work with attorneys who understand Michigan property law. We make you a cash offer that factors in the legal risk but still protects as much of your equity as possible. And we can close fast — usually within 2-4 weeks.

Whether you sell to us or find another solution, the key is to stop the bleeding. Every month you wait is money out of your pocket.

Your Next Steps

If you're dealing with a lis pendens in Troy, here's what you need to do right now:

1. Get copies of all the court documents so you understand exactly what the lawsuit is about
2. Talk to a qualified attorney about your options
3. Calculate your monthly carrying costs so you know what waiting is really costing you
4. Consider getting a cash offer from an investor who specializes in legal complications
5. Make a decision and stick with it — paralysis is expensive

I've been helping Michigan homeowners for over 20 years, and I've never seen a lis pendens situation that improved with time. The sooner you take action, the more of your equity you're likely to save.

If this sounds like your situation, give Uncle Charles a call. No pressure, no judgment — just straight answers about your options. I've probably seen your exact situation before, and I can help you figure out the best way forward.

Frequently Asked Questions

Frequently Asked Questions

Can I sell my Troy home if there's a lis pendens filed against it?

Yes, you can sell, but it's much harder. Most traditional buyers and their lenders won't touch a property with active litigation. Cash buyers and investors who specialize in legal complications are usually your best option for a quick sale.

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

A lis pendens remains on your property until the underlying lawsuit is resolved or dismissed. In Michigan, there's no automatic expiration date. I've seen them last anywhere from a few months to several years, depending on how complex the legal case is.

Will a lis pendens hurt my credit score?

The lis pendens itself doesn't directly impact your credit score since it's filed against the property, not you personally. However, if the underlying issue involves unpaid debts or if the situation leads to foreclosure, that could definitely hurt your credit.

Can I refinance my Troy home with a lis pendens?

It's extremely unlikely. Lenders require clear title for refinancing, and a lis pendens is considered a title defect. You'd need to resolve the legal issue first, which could take months or years depending on the case.

How much equity will I lose if I sell with a lis pendens?

It varies based on the situation, but I typically see discounts of 15-25% below market value when selling to cash investors. However, this might still be better than paying carrying costs and legal fees for months while waiting for the lawsuit to resolve.