Lis Pendens On Fannie Mae property?

[Ed L.]

I submitted a bid on a Fannie Mae property on Monday. It just came off the OO period and there were 5 investor offers. I overshot the listing price by $5,000 because the numbers still work out to slightly better than 2%.

Great little house in a B- Neighborhood.

Selling agent called to inform me that Fannie Mae was going to counter my offer with a few terms.

My offer was all cash.

They asked to extend the closing to 30 days instead of 15 that I offered.

They asked for $3,600 in earnest money instead of the 1000 I offered. Over 10%

Last bit the agent mentioned was that the property was subject to a list pendens?

The PO was a local builder who had 3 homes in the immediate area. According to the LA the PO filed some bogus claim trying to delay the foreclosure process. He explained how all 3 of the properties were affected by the lis pendens?

The LA did say the the seller would pay the closing cost and also furnish a owners title insurance policy.?????

I'm unfamiliar with a Lis Pendens. According to google it's a notice of a pending lawsuit.

How do I go about clearing the title?

& Does the owners title insurance policy actually protect me if the PO were to win a judgement by some odd chance???

I know this is some technical stuff that needs to be discussed with my attorney. Just looking for basic input before meeting with him tomorrow.