How to Find Distressed Properties in New York

New York distressed properties are those in financial trouble, either in pre-foreclosure or heading toward foreclosure. Some are in rough shape, but others are perfectly fine and could be a dream investment for the right buyer. Finding distressed properties in good condition is the key. You can locate these gems through many avenues, such as county and municipal resources, third-party websites, etc. Below, we have outlined all the best resources for finding distressed properties in New York.

Many distressed properties are called foreclosure homes or pre-foreclosure properties. You can find foreclosure sales online or in person. Some of the most effective ways to find foreclosure and pre-foreclosure homes in New York are:

Lien properties are another way to find distressed real estate that could potentially be an excellent investment. Most properties have mortgage liens, but those with tax, judgment, or mechanic's liens could indicate financial trouble, and the property owner might be willing to sell for less than market value. Some ways to locate lien properties in New York include:

County Recorder's Office

Tax, mechanic's, and mortgage liens are filed with the county recorder's office. Since these are public records, you can frequently find them online or visit the office in person and ask for copies. The county recorder's office may charge a small fee. Most of them have websites that provide a search portal to find the documents you need. Some places to look include:

• ACRIS - Automated City Register Information System (New York City)
• Suffolk County Clerk Document Search (Paid System)
• Ontario County Records Search (Free)
• New York State Archives - Liens
• NY Land Records
• Search IQS (Orange County)

Municipal & State Tax Collector's Office

Tax liens result when property owners fail to pay annual property taxes. These liens are filed with various local and state government offices. You can search their websites, visit in person, or call them to get copies of recent tax liens filed. Some places to start are:

• New York Department of Taxation and Finance Tax Warrants Search
• New York City Tax Lien Sales
• Monroe County Treasury Property Tax Authority
• Washington County Real Property Tax Service
• Town of Ramapo Tax Department
• White Plains New York Taxes
• Oswego County Department of Real Property Tax Services
• Livingston County Real Property Tax Services
• New York State Delinquent Taxpayers (Top 250)

New York Unified Court System

New York uses a unified court system with all types of bench and trial courts housed within the same entity. The state has a robust website with search tools, making it easy for you to find lien information on a property. Since judgment liens are processed through the courts, you can find them and mechanic's liens through this court website. You will need the Property Block and Lot number to find the document you desire.

Use a Title Company or Real Estate Attorney

Title companies conduct title searches during real estate transactions to find property liens and other encumbrances that might affect the sale. You can hire a title company to perform searches for you looking for properties with new liens, which might indicate the owner would be open to a sale. Some New York title companies to try include:

• Absolute Title Company
• National Standard Abstract LLC
• Main Street Title and Settlement Services
• Two Rivers Title Company

You can also find a real estate attorney specializing in helping property owners in financial trouble. They can also perform a deep lien property search and provide you with tips on potential investments. Some New York real estate attorneys to contact include:

• Murphy Schiller & Wilkes LLP
• MaynardNexsen
• Cavallo & Cavallo
• Rosenberg & Estis, P.C.
• Rosenbaum & Taylor, P.C.

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.

Since bankruptcies often lead to property sales, another excellent way to find distressed properties is to look for recently filed bankruptcies and any associated property. Bankruptcies often accompany lien property sales. Some ways to find distressed property due to bankruptcy include:

Search Federal Bankruptcy Court Records

PACER (Public Access to Court Electronic Records) is a federal records system where you can search for bankruptcies and liens as well as 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 New York 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.

County Clerk

The clerk's office may have recently filed liens and bankruptcy notices. You can check the local county clerk's website or visit the office in person for records.

How to Navigate the County Clerk's Website to Request Records

• Visit the county clerk's website, for example, Monroe County.
• Click on "Request Copies of Documents."
• Fill out the online form.
• Be as detailed as possible.
• Click Submit.
• Wait for a response.

New York's Unified Court System

Although you can certainly check the ACRIS system for recently filed bankruptcy or lien sales, you can also use the local New York Unified Court System to search for bankruptcies and liens. Use their website to search online, visit in person, or call to request copies of recently filed bankruptcy records.

U.S. Multi-Court Voice Case Information System (McVCIS)

The Multi-Court Voice Case Information System is another resource to try when searching for bankruptcy case information. It is a toll-free telephone system where you can call and request case-specific details.

Lien Sale Notices in Local Newspapers

New York requires that liens be published in the local newspaper in the county where the property resides, once every 14 days for four consecutive weeks or at least twice a week for three weeks. Notices will include a property description, the sale time and place, and other details about the lien sale.

How to Monitor Public Notices for Auctions and Sales

• Use the list of newspapers above and regularly check the classifieds, notices, and real estate sections for these lien property sales.
• Contact the auction manager and register to attend.
• Review the rules.
• Show up on the correct date and time.
• Make a bid.
• Ensure you have the correct cash on hand to pay for your winnings.

County & City Website Notices

Many New York counties announce lien property sales on their website. You can visit these online resources to find upcoming auctions or sales and register to attend. Some to keep an eye on are:

• Fulton County NY Tax Lien Sales
• Orange County Auction & Deed Sales
• Rochester Tax Lien Sales
• New York City Property Tax Lien Sales
• Brooklyn Tax Lien Sales

Attend Public Auctions and Sheriff's Sales

Often, a county will use the sheriff's office to manage public auctions to sell off real property. Most sheriff's offices have websites that advertise these auctions. By visiting them regularly, you can find auction schedules and mark your calendar so you don't miss any potential deals.

Some sheriff's offices in New York to monitor include:

• Orange County Sheriff's Sales
• Westchester County Sheriff's Sale
• Erie County Scheduled Sheriff's Sales
• Steuben County Sheriff's Auctions
• Suffolk County Real Property Auction

Find Information on Upcoming Property Auctions:

• Regularly peruse these auction sites and other sheriff's office websites.
• Find mention of upcoming auctions.
• Register online (if possible).
• Attend the auction.
• Make a bid.
• Win and pay.

You can also use the list of public auction houses (further down) to look for upcoming distressed New York properties to purchase.

Explore Social Media or Online Platforms

Government offices, realty professionals, and others use social media to spread the word about upcoming auctions and distressed property sales. Follow realtors who specialize in distressed property and DM them if they post anything interesting about a property you might want to buy. Set up alerts to notify you of any new listings hitting your feed.

Use the list above of online platforms to search for homes in bankruptcy, foreclosure, or being listed due to too many liens. Use filters to narrow down your search by local area, zip code, price, or home type.

Consult Real Estate Agents and Brokers

Search for real estate agents and brokers that specialize in bankruptcy and lien property sales. They can help you wade through the vast MLS listings to find properties within your local area that you are interested in purchasing. They may also have information on unlisted properties. Use the list of New York real estate brokers above to get started.

Check Out Bank and Lender REO Listings

Banks and wholesale property companies acquire property through foreclosures related to liens and bankruptcies. Another place to look for distressed properties is with these lenders. Some New York Banks to investigate include:

• Republic Bank
• Apple Bank
• Ridgewood Savings Bank
• Capital One Bank
• Chase Bank
• Municipal Credit Union
• Chase Bank
• Citibank

Find Real Estate Owned (REO) Properties

• Visit bank websites and look for REO or Real Estate departments.
• Alternatively, visit a local branch or call and speak to the proper associate.
• Ask about bank-owned properties available and any upcoming auctions or lien sales.
• Make an offer.
• Close the deal.

Hire a Title Company or Real Estate Attorney

As mentioned above, you can also contract with a title company or real estate attorney. These professionals may have access to exclusive properties not yet on the market. They can also help you comply with New York laws and provide legal advice about purchasing distressed properties. Purchasing distressed properties can be tricky. Use the list of title companies and lawyers above to get started.

When property owners are in financial trouble and can't make their mortgage payments, they often turn to a short sale to solve the problem. As part of the mitigation process, banks and lenders usually help homeowners with short sales, providing advertising and closing services to sell the home quickly for the amount due on the loan. Short sales can be an excellent investment because they often sell for far less than fair market value. Some ways to find short sales in New York consist of:

• NYC Short Sales
• Online Realty Platforms (as listed above)
• Check with Local Realtors
• Banks with REO Listings (as above)
• Newspaper Listings (classified ads)

New York has a high number of foreclosures (an average of 17,330 annually), and many more potential foreclosures end up as short sales.

Some distressed properties enter the market due to probate. When someone dies with or without a will, their estate and property usually end up in probate. The court's goal is to pay off debts, sell assets to free up cash, and ensure that the estate is correctly distributed to the beneficiaries. Some places to find probate properties include:

Surrogate's Court

The Surrogate's Court in each county handles probate records and wills. They are the place to look for property that may be up for sale. You can visit the Surrogate's Court website and use the Court Locator box to find the one you need. You may set an appointment to visit in person or search online. You may have to pay a fee for probate records and lists of properties for sale. You will also have to follow a strict process for purchasing property from the court. The process is loosely as follows:

• The executor will decide if any property needs to be sold.
• The court has the property appraised.
• The court may or may not list the property with a realtor.
• As the buyer, you may petition the court to buy the property.
• A judge will review the petition and decide whether to accept it.
• A closing will take place, and you must pay the price and take ownership.

New York State Archives

The New York State Archives has a search tool allowing you to find probate records and related property for sale. The search tool will direct you toward the correct court and docket so you can contact the responsible party to make an offer on any property. The Probate Record Pathfinder tool is also digitized on Ancestry.com New York.

Local Auctions

Scour local auction houses and county and sheriff's websites looking for property auctions. You may even find notices of real property auctions on local court websites when probate is concerned. An example is the Kings Supreme Court auction listing.

Local Realtors & Lawyers

Some New York realtors or lawyers specialize in probate cases. For example, Andrew M. Lamkin P.C. handles probate cases and facilitates probate property sales after the deceased has passed. With a bit of research, you can find realtors or lawyers who have inside information about probate cases and property that may be in good shape and sell for less than full value.

The majority of distressed properties end up in real estate auctions. Private auction houses, county offices, and state entities run these auctions, and most advertise them online on their website or through other means. Some of the best New York auction resources include:

Private Auction Houses

County tax offices, lenders, and others with property to sell use private auction houses to auction them off to the highest bidder. Some reputable and popular auction houses in New York include:

• Alestra Auctions NYC
• Brzostek's Auction Service Co. Inc.
• Maltz Auctions
• Public Sale Auction House

You can also try some state or city resources like:

• New York State Surplus Real Estate Auctions
• New York City, Public Administrator of New York County
• NYC Office of General Services Auctions
• New York State Thruway Authority
• Queens County Public Administrator Real Estate Auctions
• City of Amsterdam, NY Tax Foreclosure Auction

Online Auction Platforms

You can check real estate listings for auction sales, but you should focus on websites that specialize in listing auction properties. Some to check out include:

• Auction.com
• ServiceLink Auction
• Hubzu

Local Newspaper Auction Ads

New York law requires that before a foreclosure or lien property can be auctioned off, the auction manager must post a notice in the local newspaper for about a month. You can use the list of newspapers above to check classifieds, ads, and the real estate section to find upcoming auctions and jot down the date to attend. The ad should also mention the details of where, when, and who is putting it on.

County & State Websites

Many local and state government offices post notices of real estate auctions on their websites. These listings will give you all the details and allow you to register online. Some to consider include:

• Orange County NY
• Suffolk County NY
• Erie County NY

Real Estate Agents

Distressed property real estate agents like Carrow Real Estate Services can give you an early heads-up about upcoming properties that are about to hit the market and auction details. Talk to some local agents and initiate a connection so they can be a resource for you to find auction properties fast before your competition does.

Distressed properties are not limited to residential homes; they can also include commercial buildings and land. These properties are often sold to regain some financial value and get out of debt. New York has seen a significant rise in distressed commercial properties over the past few years. Property owners are forced to sell well below fair market value to pay off the loan, taxes, interest, and penalties.

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

Although a typical home buyer won't purchase a distressed property, others may jump at the chance. Some of the most common types of people who buy distressed property in New York are:

Real Estate Investors

Real estate investors look for distressed properties because they sell for less, and the investor can flip them for a profit or use them as rental income. Some to consider are:

• New York Life Investments
• Evans Real Estate Investments
• Time Equities Inc.
• Long Island Real Estate Investors Association

First Time Homebuyers

First-time homebuyers look for cheaper homes. Buying a distressed property in good shape could allow them to buy a larger home in a nicer neighborhood for less. However, they must be careful to inspect the property thoroughly before purchasing. Over 60% of New York homebuyers are first-time buyers.

Nonprofits

Nonprofits, such as religious organizations and foundations that help low-income families, need inexpensive buildings to operate from, and distressed properties often fit the bill. New York has 46,214 nonprofit organizations.

Developers

Developers sometimes acquire distressed properties to fix up and sell, revamp entire neighborhoods, or house their operations. Due to their price, these properties are desirable.

All-Cash House Wholesalers

New York has a plethora of cash wholesalers that buy distressed properties cheaply, offering the homeowner cash (pennies on the dollar) to get out of debt quickly. These companies then sell them for a profit. Some may also employ builders to fix up those in rough shape before selling. Some wholesalers to consider are:

• Fast-Home-Offer
• We Buy Ugly Houses
• Elite Properties
• Cash for Properties NYC
• We Buy Homes 365