Lis pendens by U.S. Attorney - Posted by michaela-ATL

Posted by michaela-ATL on August 26, 2005 at 15:58:10:

actually, it’s a lovely snakepit ;-). There are a total of 10 lots, that are coming out of this same bankruptcy.
The one with the lis pendens is only 1. There’s a double lot, that is in the middle of an area, where the city of Atlanta has bought out everything in the past few years. They’re planning to start a mix-use developement within 18 months. Mine is one of the last parcesls, that they need ;-). Then there’s a doublelot, which will also need quiet title, which is also in the middle of another planned developement. Mine’s the last one. 40’ roadfrontage lots have sold between 250k-400k. Mine has 90; road frontage. I’m buying for 2.5k above existing liens ;-). And there are several, that have clear titles and that are already presold to builders and I will have double closings. This whole thing took several months of research, but I’ve learned SOOO much.


Lis pendens by U.S. Attorney - Posted by michaela-ATL

Posted by michaela-ATL on August 24, 2005 at 13:31:55:

I don’t know, if ay of you can give me advice on this situation, since it seems to stradle Real Estate, Civil and Criminal law. I know this board is just basic advice, but I’m not even sure what kind of attorney I need to approach about this.

This guy, let’s call him A, found a bunch of left over properties from a bankrupt company (they were abandoned in the bankruptcy). He started a new company with the same name and did quitclaim deeds to another corporation, that he has. These are vacant lots and are just sitting there.

I found the same left-ver pieces and negotiated with him about buying them. Signed contracts and during title search found that this is a ‘new’ corporation and not the original one reinstated.

A had been indicted in February for mortgage fraud on unrelated properties. Due to this, the U.S. attorney put a lis pendens on the nicest, most valuable property.

I, in the meantime, found the original shareholders of the corporation, negotiated with them, got the bankruptcy trustee on board, my real estate attorney etc. and am supposed to buy all these properties from them.

I met with the prosecutor and an FBI agent about this, gave them all my proof, that A doesn’t even have any legal right to these properties. That he’s stealing them. THey were very interested in my documentation and are actually using it in the trial as further evidence against him. I knew alot more details about the real estate dealings of this guy, than what they had and this is really strenghtening their case.

The thing is, they’re kind of putting me off about taking off the lis pendens. I would think, that they don’t have a legal right to keep it on there, since they now know, that he doesn’t own the property. But they’re saying ‘we’re working through it’ or ‘that’s the civil side and we’re criminal’ or just putting me off.

Does the real owner of the property have any rights or is it ‘once they want to seize something they can just take it, no matter what?’

What would you do?


Re: Lis pendens by U.S. Attorney - Posted by Nobody Likes a Snitch

Posted by Nobody Likes a Snitch on September 11, 2005 at 23:05:46:

Maybe thats why that wont drop the suit.

Mention the Federal Judge - Posted by John Merchant

Posted by John Merchant on August 26, 2005 at 16:09:08:

If the criminal thing (or the Gov’s Civil suit) is in Fed Court then I’d ask your lawyer to tell the prosecution that if it’s NOT expunged, voluntarily and NOW, he’s going to take this to the Federal Judge right now.

That should get the prosecution high behind as they don’t want anything going to the court that might just screw up their prosecution in any way.

I’ve seen a lot of things magically straightened out when the involvement of a Fed judge was mentioned…as NOBODY sane wants to risk the ire of that person.

Re: Lis pendens by U.S. Attorney - Posted by Brian

Posted by Brian on August 24, 2005 at 16:49:26:

File a motion for expungement of the Lis Pendens

Re: Lis pendens by U.S. Attorney - Posted by michaela-ATL

Posted by michaela-ATL on September 12, 2005 at 17:06:58:

Since you don’t seem to have a problem with someone doing major mortgage fraud and tainting every investor doing legitimate business, then that clearly shows your moral compass.Oh, and , yes, they did drop the lis pendens.


Thank you, John - Posted by michaela-ATL

Posted by michaela-ATL on August 26, 2005 at 18:13:36:

That’s a great thing to know. I expect the prosecutor to call me on monday. I got a call from the criminal (initially I had dealt with him, thinking that he’s the owner, so we talked a lot of business until I found out, that he fraudulant transfers). wanting to sell me some mroe properties. I left a message fro the prosecutor, saying, that I’d let them be part of this, if they expunge the lis pendens on that property. I had also planned to ask him, whether I’d have to start litigation and get the media involved (I don’t think he’d like that, since the ‘A’ doesn’t know, yet, that I have turned in evidence).

SO, now you’ve given me another tool, yeah :wink:


Re: Lis pendens by U.S. Attorney - Posted by michaela-ATL

Posted by michaela-ATL on August 24, 2005 at 18:14:34:


thank you very much. That gives me soemthing to work with. I’m searching right now in Google, not a lot of info, but it’s educational.

Maybe I’m naive, but I’m also thinking, that maybe if I can get an attorney that knows about this stuff to call and discuss this with the prosecutor, he might decide to just let this go. They don’t have a legal standing and I’m sure they don’t want me to be a disgruntled witness for their side in their case against A :wink:


Re: Lis pendens by U.S. Attorney - Posted by Brian (UT)

Posted by Brian (UT) on August 25, 2005 at 12:35:23:


You can check this out with your attorney but I believe just because there is a Lis Pendens filed that doesn’t stop the true owner from selling the property, it just notifies the public that someone is claiming they have a suit that may affect title.

So you can buy the property, but of course the only financing you will get is seller financing until everything is resolved. Lets face it the guy doesn’t own it the feds really can’t take it from him no matter what the outcome is because he doesn’t own it! The Lis Pendems was probably only filed to restrict his activities and could probably removed easily with a court action by the real owner.

Depending on the amount of money involved I would be inclined to buy the property with seller financing with no interest to accrue until the matter is resolved, etc. and then I would file a quiet title lawsuit and get clear title.


Re: Lis pendens by U.S. Attorney - Posted by Sailor

Posted by Sailor on August 24, 2005 at 20:30:40:

That’s it then, kid, you’ve got the ol’ “disgruntled witness” bargaining chip. Good luck!

Re: Lis pendens by U.S. Attorney - Posted by michaela-ATL

Posted by michaela-ATL on August 25, 2005 at 19:23:21:


the thing is, the real owners don’t want any longterm involvement in this. The company went bankrupt in 93. The Original President (I’m dealing with the VP and secretary who lost millions themselves) screwed the shareholders and investors over with some large ponzi scheme. Went to jail. The officers didn’t know that there was property left. I did all the research and found 10 proeprties. The officers even have their own attorney involved to make sure that nothing wrong will come of it. So, they won’t file any legal action and they won’t do owner financing. They just want in and out. I spoke to an attorney today, just wanting someone, that speaks the same language to call and find out where I stand. Once he read the paperwork he said, that this can not be handled with a phonecall and he wouldn’t even touch this without a 10k retainer. Dam*. I guess I will call the Prosecutor again tomorrow and ask where we stand and whether I will have to get into litigation with him.

The thing is, I wholesale these lots and I can’t sell with that lis pendens on it. They’re trying to seize the property. I may have to read up and file that motion pro se.


Re: Lis pendens by U.S. Attorney - Posted by Brian (UT)

Posted by Brian (UT) on August 26, 2005 at 12:55:07:


Looks like you fell into a real snakepit. It almost appears like the Lis Pendens is really intended for the benefit of the original criminal activities and until they are fully resolved, e.g. restitution orders, etc related to the orignial crime, there is no property to be sold without permission of the proper court.

Maybe you can get a long term option from the people your dealing with for a buck and just sit back and wait and see, they may not have the right to sell evem if they are represented by an attorney and this could come back to bit you in the you know what.

If this keeps up, you may be eligible to sit for the bar exam.