Lis Pendens Impact Calculator

Lis pendens cloud title and reduce sale price by 20–40% during pending litigation.

Current value

Value discount %

Months to resolve

Monthly carry

Legal fees

Total impact

$170,000

Value discount amount

$125,000

Carrying cost

$30,000

How the math works

Total = value discount + carry + legal fees.

$500k × 25% + 12 × $2,500 + $15k = $125k + $30k + $15k = $170,000 total LP impact.

How to Use

Enter current value.
Enter value discount %.
Enter months to resolve.
Enter monthly carry.
Enter legal fees.
Read total impact.

Frequently Asked Questions

Lis pendens dynamics?

Filed when property is subject of litigation (foreclosure, partition, easement, mechanic's lien dispute, divorce). Title insurance won't issue on property with active LP. Most lenders won't lend. Property value impact: 15–35% discount typical for sale during LP. Time to clear: 60 days to 3+ years. Cost to remove: legal fees + settlement of underlying claim. Strategy: settle quickly to clear title, especially if owner needs to sell. Court can require LP filer to post bond if frivolous.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.