How to Find Distressed Properties in Washington

Investors dream of that big payoff, and finding and buying distressed property could make that dream come true. The key is knowing where and how to find quality distressed property. Distressed property is often significantly discounted, selling for far less than fair market value, due to the owner's financial circumstances. Many are in perfect shape, and you can pick them up for a fraction of what they are worth. You can find these properties through public records. Property records are held with government agencies, the courts, the sheriff's department, and tax offices. You can also find them online and in person with commercial and public resources like newspapers, law firms, realtors, title companies, and auctions. Use the resources below to find distressed property in Washington.

When a person in financial trouble cannot pay their mortgage, taxes, or creditors, they may end up in foreclosure and lose the house. Pre-foreclosure is the period before the home is sold at auction. The owner has some time to figure out a solution before the house is auctioned off. That sweet spot of time is the perfect opportunity for an investor to make an offer. The sources below can help you find foreclosure and pre-foreclosure homes.

Liens often indicate financial troubles, especially if there is more than one. Most homeowners have a mortgage lien, but those with tax, mechanic's, and judgment liens will probably lose the house in foreclosure. Finding liens can help you find distressed property to buy. Use the resources below to find lien properties in Washington.

State of Washington Department of Revenue

The State of Washington Department of Revenue governs all local county tax officials. When a county imposes a lien on a property, the Department of Revenue receives notification. You can contact this agency for a list of recently filed tax and other types of liens.

County Recorder's Offices

County recorder's offices also maintain copies of mortgage and mechanic's liens. You can find those by contacting these county offices. You can visit in person to request copies of records or check online through their website. Use the list of county recorders above to get started.

Washington Courts

Some types of liens (judgment/mechanic's) are filed through the Washington State Courts. You can contact these courthouses and visit the court clerk to request records or use the search tool to find lien cases online. The Washington state court system is unified, so there is only one court to visit for all types.

Washington Secretary of State

The Washington Secretary of State office also receives copies of tax liens when they are imposed by local county government. You can contact this office to get copies or a list of the most recently filed tax liens.

Use a Title Company or Real Estate Attorney

Before the sale of property can close, a real estate attorney or title company runs a thorough title search. It is designed to uncover any title defects, liens, other encumbrances, title disputes, legal issues or other things that could pose problems later. You can hire a title company or real estate attorney to run one of these exact searches for you on a piece of property or have them compile a list of lien properties that might be ripe for sale. Some to start with include:

Washington Title Companies

• First American Title in Washington
• Land Title Company
• Old Republic Title
• Rainier Title
• Stevens County Title & Escrow
• Ticor Title
• Washington Title & Escrow

Washington Real Estate Attorneys

• Antonoplos & Associates Attorneys at Law
• Dimension Law Group
• Marine View Law
• Law Offices of Maxim Lissak, PLLC
• Law Offices of Theresa Nguyen, PLLC
• Peterson Law, PLLC
• McFerran Law, P.S.
• Steinacker Law, PLLC

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.

When a person's financial situation gets too bad, they might file for bankruptcy. Bankruptcy can also lead to distressed properties. Once a judge reviews the case, the estate manager may demand that the homeowner sell off property to pay off the debts. This is excellent news for investors looking for good-quality properties for less. You can often contact the court or owner and make an offer. Lien property sales (auctions) are another way to find good distressed properties to buy. Some ways to begin are:

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 Washington 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 Washington

Bankruptcy is a federal program to help financially strapped people get out of debt and pay off their creditors. You must file for bankruptcy in Washington at one of the district courts. You can use the links below to search for bankruptcy cases, contact the property owner, and take it from there.

• Eastern District of Washington Bankruptcy Court
• Western District of Washington Bankruptcy Court

State of Washington Department of Revenue

The State of Washington Department of Revenue maintains a list of all lien properties within the state. You can contact them to get a copy of this list and contact homeowners with recently filed tax liens. When it gets to the point of a tax lien, chances are the person is in real financial trouble.

County Websites

When the county tax official decides to foreclose and sell the property at auction, these sales are often listed on county websites where people can find them. You can register to attend the event online and review the rules and regulations. Each notice will include the property address, date, time, and auction location. Some to get you started include:

• King County Foreclosed Property Auctions
• Kitsap County Tax Foreclosures
• Pierce County Tax Foreclosures
• Snohomish County Tax Lien Foreclosures
• Spokane County Foreclosures
• Thurston County Real Property Auctions
• Whatcom County Tax Foreclosure Sales
• Whitman County Tax Foreclosures

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

Lienholders often advertise lien sale notices in newspapers. You can find these in the real estate, public notice, or classified sections. Check online newspapers and paper versions to find auctions and register. Use the list of newspapers above to get started.

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

You can also find bankruptcy and lien properties by attending auctions and sheriff sales. Public auctions are advertised on county websites, tax official websites, newspapers, and realty websites. Scour the internet looking for "tax lien auctions" and "sheriff sales" in Washington. Attend as many as you can. Real estate is a numbers game.

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

Social media websites have become all the rage for getting the word out. Many distressed property players use social media to market lien property auctions and distressed property sales. Look for private groups or pages like this one, "Washington State Real Estate Investors Group," and join or follow them to get notices of new property for sale.

Consult Real Estate Agents and Brokers

Real estate agents and brokers are a fabulous resource to tap when looking for distressed property. They have their finger on the pulse of the local market and can point you in the right direction quickly. Find a few brokers you like and develop relationships so that when a new off-market property appears, they contact you first. Some Washington brokers to consider are:

• Century 21
• Coldwell Banker
• Ramsey Solutions
• The Madrona Group

Specialty Websites - Distressed Properties

Sometimes, you can find distressed properties online through specialty or unique websites you may not consider. It's worth it to check under every rock, you might find a diamond in the rough. Check out these specialty websites to find distressed property.

• Barnett Associates Short Sale Homes
• Clever Real Estate
• Richr
• Seattle Mortgage Planners - Buying Distressed Real Estate
• Washington Distressed Home Consulting
• WS DOT

Hire a Real Estate Attorney

Real estate attorneys work with people going through bankruptcy, tax liens, and other property issues. They can be a great asset when looking for distressed property. Use the links above to find real estate attorneys in Washington who are willing to work with you to create connections and help you find the right property.

Short sales result when a person cannot pay their mortgage. The first step they take is to contact the mortgage lender. The bank may offer some mitigation options, but they will suggest a short sale if nothing else works. To sell it quickly, the lender will help the homeowner with advertising, showings, realtors, and even the closing fees. Since short sales generally sell for the outstanding balance of the loan plus fees and interest, they can be a great deal. Some ways to find short sales in Washington include:

Check Out Bank and Lender REO Listings

Banks and mortgage companies are the best way to find short sales in Washington. Before a lender forecloses (selling the property at auction), you can buy an off-market property for less. If they have already held an auction and were the highest bidder, they own it and now need to sell it. You can also find bank-owned and REO (real estate owned) properties. Contact some local lenders and speak to their real estate or REO department to see if they have any leads on property. Some banks to start with include:

• Farmers State Bank
• Heritage Bank
• Peoples Bank
• Security State Bank
• State Bank Northwest
• Timberland Bank
• WaFd Bank
• Washington Trust Bank

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

• Capstone Home Loans
• Element Mortgage WA
• Mortgage One Northwest, Inc.
• Sammamish Mortgage
• TILA Mortgage LLC
• Washington First Mortgage

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.

Although probate is not always required in Washington, most estates will pass through probate after someone dies. If they have extensive debts that must be paid, the court may sell off property to pay them. Probate properties usually sell for less than fair market value, making them a good investment opportunity. You can find probate properties by using the following resources.

Washington Courts

Each individual county handles probate. You can use probate courts to request records for probate cases with property. Then you can contact either the court or family and make an offer. Some of the local county probate courts in Washington to try include:

• King County Probate
• Pierce County Probate Court
• Spokane County Probate Court
• Snohomish County Probate
• Thurston County Probate

Local Obituaries

Another way to find potential probate properties is to peruse local obituaries regularly. You can find recent mentions and then do a little research through public records to find out more about relatives and contact them to see if they are willing to sell. Some local obituary sources are newspapers and the online websites below.

• Legacy
• Washington Genealogy
• Washington State Department of Health
• Washington Public Libraries
• Washington State Archives

Also check local funeral home websites for obituaries.

Local Funeral Homes

Local Washington funeral homes are another great resource for finding probate properties. These companies work closely with families to honor and memorialize their loved ones and may know of off-market potential buys. Some local Washington funeral homes to contact include:

• Columbia Funeral Home & Crematory
• Emmick Funerals
• Mountain View Funeral Home & Crematory
• Schaefer-Shipman Funeral Home
• The Co-Op Funeral Home of People's Memorial
• Yahn & Son Funeral Home & Crematory

Local Private Estate Auctions

When someone dies, the family may hold an estate auction to sell the property and belongings themselves. These auctions are often mentioned on social media and newspaper websites. The family may also advertise on realty websites.

Local Realtors & Lawyers

Local realtors and lawyers have connections to families who have recently lost someone. These professionals can introduce you to interested sellers motivated to let go of property cheaply. Use the lists above to contact local realtors or lawyers and ask if they know of any off-market property for sale due to the death of someone.

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.

Real estate auctions are one of the best ways to find distressed property. You should attend as many as possible to find the right homes. Some may be in poor condition, but others will be fine and pose an excellent opportunity for profit. Real estate auctions are hosted by government agencies, the courts, private individuals, lenders, and realty companies. Use the resources below to find real estate auctions in Washington.

Private Auction Houses

Many people hire private auction houses to host distressed property auctions for them. These companies do everything from advertising, collecting registrations, posting rules, and holding the event. They can even handle the documentation and transfer of funds and property. You can find these companies online, in newspapers, and other sources. Some to try are:

• Allegria Auctions
• Concierge Auctions
• Murphy Auctions
• Odyssey Estate Sales
• Sound Estate Company
• Stokes Auction

State or City Resources

You can also find tax lien, foreclosure, or probate auctions on state and city resources. You may find them listed on county websites, sheriff's offices, city websites, and tax office sites. See the list below to get started:

• City of Issaquah Property Auctions
• Island County Real Property
• King County Real Property Auction
• Okanogan County Foreclosures
• Pierce County Foreclosure Auctions
• Snohomish County Tax Lien Foreclosures
• Spokane County Real Property Auctions
• Thurston County Real Property Foreclosures
• Whatcom County Real Property Auctions

Online Auction Platforms

Real property auctions also appear on the various online auction platforms out there. Auction hosts post them anywhere they can to get more exposure and drive up bids. You can find these platforms easily through a search, and each website has filters and tools to make searching easier. Some to try are:

• Auction.com
• Hubzu
• LandSearch
• RI Marketplace
• ServiceLink
• Ten-X
• Xome

Local Newspaper Auction Ads

You can also regularly watch the local newspaper for ads of upcoming real estate auctions. Use the list of Washington newspapers above. Check the paper's classifieds, real estate, and public notices sections. You might also find these mentioned on public notice websites like the ones below.

• WA Public Notices
• Washington Newspaper Publishers Association - Public Notices
• Washington Probate

Real Estate Agents

Often real estate agents will handle tax lien or foreclosure auctions. These professionals will have everything covered and can be a great resource. Contact local real estate agents (using the lists above) to ask if they know of any upcoming Washington real property auctions.

People sell distressed properties for many reasons. The most common is to recoup some type of financial loss. Lenders and tax officials sell to pay back the mortgage and taxes. Creditors want to get paid for the homeowner's debts. Other people may sell property after someone dies, when getting a divorce, if they need to move quickly, or to avoid fixing the place up and making necessary upgrades. Some people sell for less to improve their financial position. If they have an expensive mortgage, it may become too much for them to keep paying.

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

Everyday real estate buyers probably won't want to deal with the hassles that often come with buying distressed property. However, investors and those looking for a deal may seek out distressed property. Some of the most common types that buy distressed property in Washington include:

Real Estate Investors

Real estate investors make up the majority of those who purchase distressed property. Their goal is to buy low and sell high, making a profit. If they can find good-quality homes that sell for less than market value, they can sell them quickly without having to do anything. They can fix them if needed and then sell them for more. Some real estate investors in Washington include:

• Easy Street Capital
• Enel North America
• Mashvisor
• Sands Investment Group
• Spectra Lending
• Washington Holdings

First Time Homebuyers

First-time homebuyers are typically strapped for cash, so they look for ways to stretch their dollars further. One way is to buy distressed property that needs a bit of fixing up. Over time, they can make upgrades and eventually sell the home for the current fair market value, making a profit. Roughly 24% of Washington homebuyers are first-time buyers.

Nonprofits

Washington has over 55,000 nonprofit businesses. These companies are on a mission to improve the world by supporting a cause or particular group of people. One way these organizations save money to put back into the business is to invest in distressed property when they need buildings for operations or to house people.

Developers

Land developers also buy distressed property. Some purchase entire neighborhoods to fix up and flip. Others may buy commercial buildings or homes to use the land for a specific purpose. Distressed property works really well when you want to fix up buildings or homes to offer to low-income families, disabled adults, or veterans. Washington has nearly 400 land and real estate development firms.

Wholesale Companies

Real estate wholesalers also buy distressed property. These companies offer owners cash for their homes. They make the transaction simple. The owner doesn't have to fix anything or make any necessary repairs or upgrades. Wholesale companies offer far less than fair market value, then fix the homes and sell them for a profit. Some wholesalers to consider are:

• Ark7
• BatchLeads
• BiggerPockets
• National Pro Buyers
• New Western
• Pacific Northwest Brokers
• Real Estate Bees