A distressed property is a property under a foreclosure order or is posted for sale by its mortgagee. Distressed property is always priced under its market price. Since no one will call his house distressed, it is hard to find one. However, here are 4 ways to find distressed property.
Abandoned or vacant;
There are a lot of vacant homes in some areas. These properties might be in probate, bank owned, out of town owners or government owned category.
Out of town owners– these are owners have moved to other towns, leaving the property vacant, investment or rental waiting for a change in market conditions. You might get this list from title companies.
Bank owned– these are properties owned by banks after being closed. Most of these houses sit vacant. Bank always list all these properties on Multiple Listing Service.
Government properties– these are 1-to-4 unit residential house acquired by government as a result of a foreclosure action. You can find such homes on government websites.
Probate– after the death of a home owner, the property goes into probate. The probate attorney is required to assign the property to the state or the right heirs. Legal paper of your county will provide information on probate properties.
Owners in delinquent status;
This covers both mortgages and taxes.
Mortgage-the best owners are the ones with a certain foreclosure dates. You can get these properties in your county’s legal paper.
Taxes– get owners who are few days away from tax auction date. Tax delinquent properties can easily be taken from the Tax Assessor’s Office of your state or municipality.
Multiple listing service strategy– you basically perform an MLS search in a given area that have been on the market for a long time. Here is a video showing you what to look for on MLS.
For sale by owner – walking to a house with FSBO sign in the front yard will give you a good deal. These are usually motivated sellers that tend to want to avoid foreclosure and save their credit rating. They are mostly educated on strategies like lease options.
Aging population-with high level of aging population with improving economic conditions, elderly home owners and landlords are interested in moving to other places or putting their rental properties for sale. Aging population are often more responsive to a direct marketing campaign. You can buy lists according to demographics by any mailing list company.
There are many ways of finding a a distressed home. When dealing with owners online, you should be careful since they may give incorrect information.