What Calif. Eviction Ruling Means for Defaulting Borrowers

Litigation attorneys Anne Beehler and Krystal Anderson recently contributed to a Law360 article about a California appellate court decision examining whether a borrower's filing of a lis pendens can delay a lender or foreclosure sale buyer from evicting the borrower after foreclosure. The article analyzes the court's initial ruling that allowed the lis pendens to stall the eviction process, as well as the court's subsequent reversal finding the particular lis pendens was void because of improper service. However, the court left open whether a properly served lis pendens could cloud title and prevent perfection of ownership after foreclosure, setting the stage for further litigation on this issue with potential significant effects on lenders' ability to promptly gain possession post-foreclosure.

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