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How to Find Distressed Properties in Arizona

How to Find Distressed Properties in Arizona

Distressed properties can be a lucrative investment if you find them cheap and in good condition. Many are distressed only because of the owner's financial issues. Distressed property usually sells for far less than fair market value, often going for as low as the amount of the unpaid mortgage or taxes. Knowing where to find the deals is the key to making money on distressed property. Property records make it easier to find these properties. You can find public property records with government and private/commercial sources. Some places to look include county websites, sheriff's departments, the secretary of state, newspapers, law firms, realtors, other investors, and auction houses. Use the extensive list of resources below to find distressed properties in Arizona.

How to Find Foreclosure and Pre-Foreclosure Sales in Arizona

How to Find Foreclosure and Pre-Foreclosure Sales in Arizona

When someone cannot pay the mortgage on their house or the property taxes, the county or lender will foreclose and seize the house to sell at auction. The pre-foreclosure period is when the owner has a little time to figure out a solution before the home is auctioned. It's an ideal time for an investor to approach the owner with a fair offer. Once the house gets to foreclosure, it will be auctioned off and you could purchase it there. Some places to find foreclosure and pre-foreclosure homes include:

County and Municipal Resources

County, state, and municipal offices file and maintain most public property records. They are required by law to provide these records upon request. You can search for records online through their websites, or you can visit the office in person. If you do, you may have to pay a small per-page fee. Some county and municipal options for finding foreclosure properties through government offices include:

County Recorder's Office

Many property records like deeds, liens, foreclosures, and building permits are recorded with the county recorder's office. You can find them there by visiting the county where the property resides or checking the search tool on the county website. Look for recently filed foreclosures by lenders and tax officials. Some counties to try are:

Arizona Secretary of State

The Arizona Secretary of State is notified of county foreclosures and has a wealth of knowledge on its website. This resource allows you to search for the foreclosure registry in Arizona, which lists all homes under foreclosure at a given time.

Arizona Department of Revenue

The Arizona Department of Revenue oversees local county tax offices. They are notified when a county tax official files a tax lien and forecloses on a property to sell at auction. You can contact this office for a list of recently filed tax liens and foreclosure properties and then contact them to ask about auction details. Homes that have received a tax lien but are not yet sold are in pre-foreclosure, and you can pick them up cheaply.

Sheriff's Department

When a tax official forecloses on property in Arizona, the sheriff's office handles the auction. They advertise it on their website, host it at their offices, and handle registrations, attendance, hosting the event, and even transfer of property and money along with documentation. These sheriff's sales are posted on local Arizona county sheriff websites. Try some of these below:

Public Sources for Foreclosures

You can also consult many public sources to find foreclosure homes in Arizona. Since there is no right formula, check as many as possible to find possible investment properties. Try these below and search for others as necessary.

Law Firms

Law firms work with people going through foreclosure and may have inside knowledge of off-market properties or those that will be sold soon. Some law firms may work exclusively with the courts or government offices, helping to arrange the legal aspects of selling a foreclosure home. Contact some local law firms and ask about distressed properties that they know about.

Legal Notices in Newspapers

Foreclosure auctions are typically advertised in local newspapers. By law, before someone holds a foreclosure auction, they must post a legal notice in the local newspaper once a week for four consecutive weeks. The last one must be at least 10 days before the auction. This period gives the owner a small window of time to fix the problem. The notice will include the property address, date, time, and auction location. You can check local newspapers to look for these notices. Try these below:

Real Estate Investors

Other real estate investors can be valuable when looking for a potential investment. They may know about properties they don't want to buy that you could jump on. Some may have also purchased property and be ready to sell it cheaply. At the very least, they may have some tips on where to find pre-foreclosure and foreclosure properties. Some real estate investors in Arizona to check out include:

Public Auctions

Most foreclosures end up in public auctions. You can find these in a variety of ways. Use the resources further down this page to locate public auctions and attend as many as possible. You never know where you might find that next perfect property.

Online Real Estate Platforms

The internet is full of helpful real estate platforms, many free, where you can find foreclosure and pre-foreclosure homes. You may even stumble upon short sales and auction properties. Some online realty platforms to check out are:

  • Zillow Zillow: Zillow offers complete listings of foreclosure and pre-foreclosure homes, auctions, and bank-owned properties.
  • Equator.com Equator.com is a professional realty website where you can search for foreclosure sales.
  • Redfin Redfin: Another up-and-coming real estate platform where you can search for state-local foreclosure properties and make an offer through the website.
  • Foreclosure.com Foreclosure.com: Foreclosure is a website dedicated to listing properties by state.
  • Realtor.com Realtor.com: Realtor is another realty website that sorts houses by foreclosure. You can easily see all available foreclosure homes and narrow your search by price or location. Under "Homes for Sale", choose Foreclosures to see all the listings. The site offers the option to schedule a tour, contact the listing agent, or make an offer.
  • MLS MLS: The MLS is the standard listing database for all real estate properties in America.
  • RealtyTrac REO RealtyTrac REO: A subscription-based platform that allows you to track foreclosure homes and REO listings.
  • Auction.com Others: Some additional platforms to try are HUD Homes, Bank of America Real Estate Center, HomePath by Fannie Mae, and Auction.com.

How to Locate Properties in Arizona That Have a Lien

How to Locate Properties in Arizona That Have a Lien

Liens are legal claims on property, and they can lead to foreclosure and loss of the home. Someone with more than just a mortgage lien is probably in financial trouble. The good news is liens are public records, and you can search for them to find property owners who might be in the market to sell soon and make an offer. Some ways to find lien properties include:

Arizona Department of Revenue

When the local county recorder's office receives a new lien, they send a copy to the Arizona Department of Revenue. You can contact this office to get a list of all recent tax liens filed within the county. You can then ask the property owner if they want to sell.

County Recorder's Offices

The county recorder's office is one of the first places to look for liens. This is where tax and mechanic's liens are filed in Arizona. You can visit each office in person to request records, but you may have to pay a small fee per page. You can also search for liens on each county recorder's website. You can try the county recorder's offices above or these search portals below:

Arizona Superior Court

Judgment liens get filed with the Arizona superior court. Each county has its own superior court, and you can visit them in person to request copies of recently filed liens. You can also search the website for recent court filings or cases involving liens and property. Try some of these courts below to get started:

Use a Title Company or Real Estate Attorney

Title companies and real estate attorneys are great resources for finding tax lien properties. Both use specialized tools to perform a deep background search before selling a property, looking for title defects, legal issues, or encumbrances like liens that must be resolved before the sale can close. Contact some Arizona title companies and real estate attorneys to see if they know of any off-market lien properties or upcoming lien sales.

Arizona Title Companies

Arizona Real Estate Attorneys

Third-Party Online Databases

Another option for searching for distressed properties is to use third-party online databases like PropertyChecker. These databases sometimes allow you to download detailed property records, including lien information.

PropertyChecker is an excellent option for quickly and easily obtaining a complete property report, including value, taxes, liens, foreclosures, and other essential data. You can quickly search using the property address to see if it is in pre-foreclosure or has liens that may lead to foreclosure. You can also search by zip code to view all the pre-foreclosure homes in a specific area.

How to Find Bankruptcy & Lien Property Sales in Arizona

How to Find Bankruptcy & Lien Property Sales in Arizona

When someone has serious financial difficulties, they may file for bankruptcy, which is a court-centered process where the courts decide to forgive or help the person pay off their debts. Sometimes the court representative will order the person to sell property to pay off some of the debts. Finding bankruptcy cases and lien property sales are two more ways to find distressed property opportunities. Use the following methods to find these deals.

Search Federal Bankruptcy Court Records

PACER (Public Access to Court Electronic Records) is a federal records system where you can search for bankruptcies, liens, and other federal court filings. To use the system:

  • Visit pacer.uscourts.gov.
  • Register for a PACER account to access federal bankruptcy filings.
  • Search for bankruptcies in Arizona with the U.S. Bankruptcy Court.
  • Review the results and refine your search if necessary.
  • Find and download what you need.
  • Contact the property owner and see if they are interested in selling.

* PACER may charge you a fee to download documents.

Local Bankruptcy Court in Arizona

You must do so in person at the local bankruptcy court when filing for bankruptcy. Bankruptcy is a federal process, but each state has a local court. You can visit in person to ask for bankruptcy records (which are public records) or use the website to search online for recently filed bankruptcy. Use the links below to get started:

Arizona Department of Revenue

Local counties hold tax lien sales, but the Arizona Department of Revenue also gets copies of these holdings. They may even advertise these sales on their website. You can contact this office for a list of recent tax liens and foreclosure sales.

County Websites

County websites are one of the best places to look for lien sales. These agencies advertise them online, offer electronic registration, and provide you with the property address, date, time, and location of each event. Check out the counties below and try others as needed:

Multi-Court Voice Case Information System (McVCIS)

You can also call the self-help voice line, Voice Case Information System, at 1-866-222-8029 to get basic information on filings.

Lien Sale Notices in Local Newspapers

Another place to find lien sale notices is local newspapers. You can check the paper's real estate, public notice, and classified sections. Use the list above of local newspapers and check out paper versions or online newspapers. You may also find others while you are searching online. Some others to try are:

How to Monitor Public Notices for Auctions and Sales

  • Bookmark your favorite newspaper, auction, or county websites.
  • Check them every day for notice of any upcoming tax lien auctions.
  • Review the rules of the auction.
  • Prepare your finances and have the cash ready.
  • Register early.
  • Attend the auction.
  • Bid and hopefully win.

Attend Public Auctions and Sheriff's Sales

Attending public auctions and sheriff's sales is another surefire way to find distressed property for sale. Use the links above for sheriff sales and the links further down this page to find auction sources to check out.

Find Information on Upcoming Property Auctions:

  • Check out sheriff's office websites, county websites, or local newspapers looking for tax lien sales and auctions.
  • Mark your calendar.
  • Register online or using the instructions provided.
  • Bring cash and attend the tax sale.
  • Bid & win.

Use Social Media or Online Platforms

Many professionals now use social media accounts to promote various business activities. Some realtors, lawyers, title companies, and even government agencies advertise lien sales and other types of distressed property online, such as this Facebook group, which lists off-market pre-foreclosure properties.

Consult Real Estate Agents and Brokers

Real estate agents are experts when it comes to finding quality distressed properties. You can use them as contacts to help you find off-market lien properties and bankruptcies. These agents can work for you, or you can make connections with them so they can provide you with insider tips when new properties come up for sale. Try a few of these Arizona real estate agents.

Specialty Websites - Distressed Properties

You can sometimes find lien properties or pre-foreclosures with obscure websites you would never consider. Try a search for "Arizona Distressed Property" and see what comes up. Use these links below to get started.

Hire a Real Estate Attorney

Real estate attorneys help people who are going through bankruptcy. They might have leads on very desirable off-market properties. You can contact some local Arizona real estate attorneys to see if they can connect you with any potential sellers. Try the list of Arizona real estate attorneys below to begin.

You might also contact the State Bar of Arizona for a list of local real estate attorneys who can help you.

How to Find Short Sales in Arizona

How to Find Short Sales in Arizona

Short sales are another way to acquire potentially good-quality distressed property. Short sales result when a property owner cannot pay their mortgage, and the lender cannot modify the loan to satisfy their needs. The lender offers a short sale to avoid foreclosure, and the bank pays realtors, advertising, closing fees, and other expenses to make it happen. Usually, the house sells for the outstanding loan balance plus interest and fees, which could mean a steal for you. Use the following resources to find short sales in Arizona.

Check Out Bank and Lender REO Listings

Banks frequently repossess property through foreclosure and then try to sell it at auction. If the lender is the highest bidder, they win and own the property. They can then sell it privately or through another auction. Contact banks and speak to the real estate representatives or REO department to see if they have any off-market pre-foreclosure deals or sales coming up. Some Arizona banks to start with include:

You should also contact a few mortgage companies in Arizona to ask about any bank-owned property. Some to check out include:

Find Real Estate Owned (REO) Properties

  • Contact one of the banks near you and ask for the real estate or REO department.
  • Inquire if there are any available properties for sale.
  • If so, make an offer.
  • Close the deal.
  • Alternatively, you can go online and search realty platforms, auction houses, and HUDHomesUSA.com for bank-owned properties and inquire there.

How to Buy Probate Properties in Arizona

How to Buy Probate Properties in Arizona

When someone dies in Arizona, the estate will most often end up in probate. Probate is a court process where an executor distributes the deceased's assets to rightful beneficiaries. If the deceased person owed debts, the court may order the family or executor to sell off property to pay the debts. These properties can be of great value because they sell for less than fair market value and may be in great shape. Some ways to find probate properties in Arizona include:

Arizona Superior Court

Arizona superior courts handle probate matters. You can find a local county superior court and speak to the court clerk to ask for recently filed probate records, or you can search the county court website online to find records. Some Arizona superior courts to start with include:

Local Obituaries

Another potential way to find probate properties is to check local obituaries. You can find them in the local newspaper (both paper version and online) or search through obituary websites like these below:

Check local funeral home websites also. They often post obituaries for their clients on their sites.

Local Funeral Homes

Local funeral homes work with families of the deceased. They arrange funerals, hold services, and handle burial or cremation. While working with the family, they may learn about the estate and some off-market properties the beneficiaries intend to sell. Contact some local funeral homes to ask if they can make any introductions. Some to start with include:

Local Private Estate Auctions

Sometimes the families of deceased persons sell property to pay off debts or liquidate into cash. They may hold a private auction to sell off the property and the person's belongings. You can find these estate sales in the newspaper (classifieds or ad sections), listed online, or on social media. You can also try these websites to find estate sales and auctions:

Local Realtors & Lawyers

Realtors and lawyers work with families who have lost loved ones. These professionals get to know their clients and will have tips about families who have property and would be willing to sell. They can connect you with potential sellers easily. Use the lists above of Arizona realtors and real estate attorneys to get started.

How to Buy Probate Properties

  • Locate a probate property and contact the seller or executor of the estate.
  • Make an offer for the property.
  • If the seller/executor accepts the offer, you must petition the court for approval.
  • Appear in court for the hearing.
  • Work with the court-appointed real estate agent on purchase details, inspections, appraisals, etc.
  • You can close and take possession once the court approves the sale.

How to Find Real Estate Auctions in Arizona

How to Find Real Estate Auctions in Arizona

Finding distressed property can be a challenge. The key is saturating yourself in as many opportunities as possible. Attend as many real estate auctions as you can and bid high to win. You can find real estate auctions through many different sources. Try the ones below to get started.

Private Auction Houses

Many distressed property players hire private auction houses to handle everything. These companies are experts who take registrations, post the rules and regulations, handle paperwork, hold events, and manage the transfer of money and property. You can find Arizona property auctions by visiting these websites or calling them to ask. Some to try out include:

State or City Resources

You can also find auctions held through government offices. Mention of these auctions may be posted on federal, state, and local agency websites. Check out the ones below and do a search for even more Arizona auctions online.

Online Auction Platforms

You can also use the dozens of online auction platforms to find real estate auctions. These sites have handy filters and other tools to help you narrow your search to find what you need. Try some of these below:

Local Newspaper Auction Ads

Check local newspapers for real estate auctions ads. You can find them in the classifieds, real estate sections, or through advertisements throughout the paper. Check online newspapers as well. Use the list of Arizona newspapers above to get started.

Real Estate Agents

Arizona real estate agents will know the market well and know about any upcoming real estate auctions. Contact local agents to see if they know of any or are handling an auction for a government agency, lender, or private family. Some to try are listed above.

Common Types of Distressed Properties

Properties become distressed for different reasons, resulting in various types. Some of the most common types you will find in Arizona include:

  • Foreclosures: Most distressed homes are that way due to foreclosure. Arizona is ranked 20th in the U.S. regarding foreclosure, and the rate is one in every 1,828 housing units.
  • Short Sales: Short sales occur when homeowners cannot pay their mortgages. Although short sales are decreasing in Arizona, the state has a severe housing shortage.
  • Bank Owned: A property becomes bank-owned when banks win a foreclosure auction. Arizona currently has between 184-212 bank-owned properties.
  • Motivated Sellers: People who need to move quickly either to leave on assignment, take a job in another state, or want to get out from under a hefty mortgage may be motivated to sell for less.
  • Estate Sales/Probate: Sometimes the courts order families or the executor to sell property to pay off the deceased's debts.
  • Divorce Properties: Divorcing couples often sell the marital property for far less than market value. The divorce rate in Arizona is between 10.98 and 12.63 per 1,000 people.
  • Tax Delinquent: When a homeowner cannot pay their taxes, the county will impose a tax lien and eventually sell the house in a foreclosure auction.
  • Abandoned Homes: People often abandon homes for various reasons, and the county or state will scoop them up and sell them at auction.

Some of the reasons these properties become distressed include:

  • Financial Issues: Financial troubles are the number one reason homes become distressed. Money issues usually lead to liens and then foreclosure.
  • Physical Deterioration: Homes require regular maintenance and upgrades, and sometimes, this becomes too much for the owner to keep up with, causing the property to become run down and need fixing.
  • Legal Challenges: Another reason houses become distressed is legal issues like title issues (legal claims on the property), liens, or lawsuits.

Why Are Distressed Properties Sold?

Most distressed properties are sold because the owner cannot pay their mortgage, taxes, or other creditors. The government office, creditor, or lender forecloses and sells the house at auction to get their money. People in the military might need to move quickly and sell distressed property. Some properties are sold distressed to pay off debts or liquidate assets after someone dies. Divorcing couples and those who don't want to deal with upkeep and repairs may also sell their property for less than fair market value, marking it distressed.

Although distressed properties can be a great investment, they involve some additional risks, such as:

  • Hidden Flaws
  • Expensive Repairs
  • Legal Issues (title issues, unpaid liens, taxes, etc.)
  • Complex Negotiations
  • Long Wait Times to Close
  • Cumbersome Paperwork

Who Buys Distressed Properties?

Although regular real estate buyers will want to shy away from distressed properties, some will seek them out to save money. Because distressed property sells for less, it can be a great deal. Some will need work, but others will be in perfect shape and can be resold without lifting a finger. Some of the most common types that buy distressed property in Arizona are:

Real Estate Investors

The most common type of distressed property buyer is real estate investors. These people seek out deals and strive to find good quality distressed property to buy and use or resell. You can partner with these professionals to find properties or buy directly from them. Some to try are:

First Time Homebuyers

Many young couples or first-time buyers have limited means to buy a house. They may have less for a down payment than other buyers. One way to stretch their dollar further is to buy a distressed property. Even if the house needs repairs or upgrades, they could get into a larger home in a better neighborhood for less. Over time, it could be an excellent investment, which could turn a profit.

Nonprofits

Nonprofits strive to better the lives of others. They often have limited budgets and little extra cash to invest in buildings. To make ends meet, they may turn to distressed property. They can find larger commercial buildings selling for less, and even if they must fix them up a bit, it will still be worth it in the end. Arizona has 28,379 nonprofit organizations.

Developers

Real estate and land developers also use distressed property to buy cheap and sell for a profit. They might buy up a few houses in a neighborhood, fix them, and try to raise property values. Sometimes they buy commercial buildings or apartments to use for low-income housing. Some buy distressed property to use the land. These developers have vast networks of resources to improve the property so they can safely purchase distressed property without risk. Some land developers in Arizona are:

Wholesale Companies

Realty wholesale companies offer people in financial trouble cash (pennies on the dollar) for their homes. Many in real tough shape will take them up on it. These companies profit considerably from reselling the house for less than fair market value. They may fix them up a bit before selling. The owner doesn't have to do anything, sign over the property, and take the cash. Some Arizona wholesalers include:

The Process of Purchasing Distressed Properties in Arizona

Arizona has a vacancy rate of 15%, which is higher than the national average. At any given time, there are approximately 3,207 foreclosures. One in every 961 homes becomes distressed. That means if you are interested in buying one, you have an abundant opportunity to do so. The process of purchasing an Arizona distressed home is as follows:

  • Find Distressed Properties: The trick is finding the right property for you. You can check public records for newly filed foreclosures or tax liens. Monitor bank or public real estate auctions to find available homes. Check local municipal websites for notices of upcoming foreclosure auctions.
  • Secure Your Financing: Work with your bank or lender to secure the proper financing. Often, you must pay cash for the property and take immediate delivery.
  • Hire a Real Estate Professional: Consider hiring a real estate agent specializing in distressed properties. These can be more complex to negotiate and buy.
  • Attend Auctions: Attend foreclosure auctions and bid if you have the available funds.
  • Inspect the Property: If possible, tour the property and have it inspected and appraised so you can prepare for the sale, knowing everything you can about it.
  • Review Property Records: Research the property and its owners using public property records to look for red flags.
  • Make an Offer/Negotiate the Deal: Make an offer, bid, or negotiate the deal and take care of your side of things.
  • Pay and Close: Close on the house and pay the amount due, sign the paperwork, and take possession.

Things to Consider When Buying Distressed Properties

Distressed properties can be a great investment, but they often come with challenges you may not be aware of. Always be very careful when purchasing distressed real estate.

  • Thorough Inspection: Have the home thoroughly inspected by a qualified company. Look for any serious structural damage that could be costly to repair.
  • Background Check: Conduct a background check on the owner and property, looking for any red flags, such as lawsuits, liens, title issues, unpaid property taxes, etc., that might complicate the sale.
  • Budgeting: When buying a distressed property, remember to budget for closing costs, inspection, appraisal, and any necessary maintenance.
  • Research the Local Area: Research the local area and property values thoroughly. Some areas are in a decline, and you may end up owning something that decreases in value rather than increases.
  • Work with Professionals: Work with an experienced Arizona professional who has helped others find and purchase distressed properties.

Instant Access to Arizona Property Records

Table of Contents

Instant Access to Arizona Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to Arizona Property Records

Table of Contents

Arizona Property Resources