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lis pendens recorded after signing of loan docs but before funding

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What is the name of your state? CA

Two weeks ago, I signed loan docs (home title in mine and my mother's name) and we were approved for a $400,000 2nd mortgage. However, the lender will not fund because a lis pendens (pending suit againt mother) was filed in the amount of $10,000 on the property one week ago.

The suit is contract in nature and money damages are adequate. I know that most lenders will not fund if there is a cloud on title, but I was wondering has any information on how lenders would feel about my offer to put the $10,000 in trust in favor of the lender that would fund should the outcome of the suit disfavor us.

I know that a lis pendens is not dispositive on a lender refusing to fund. Your speculation on my offer to the lender and any advice short of hiring an attorney is greatly appreciated via email, PM, or post.

Thank you in advance.
 



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