How to Find Distressed Properties in Pennsylvania

Distressed properties are becoming more prevalent across the county. Pennsylvania is no exception. These properties can be an excellent investment because they usually sell for far less than fair market value (FMV). Some are abandoned and may need some repairs, but others are in perfect shape and are distressed only due to the owner's financial position. If you are in the market for a distressed property, you need to know where to look to find them before your competition does. Some places to look include county and state offices, local media outlets, auction houses, third-party commercial websites, and others. Below is a detailed list and links to all the sources you need to find Pennsylvania distressed properties.

Pennsylvania has a foreclosure rate of one in every 4,545 houses. The state has one of the highest repossession rates, and 1,302 of those repossessions occurred in Philadelphia. When a homeowner cannot pay their mortgage, taxes, or other debts, they often lose the house in foreclosure. Pre-foreclosure is the time period before the auction sale and an ideal opportunity for an investor to purchase the property. To find foreclosure homes, use the following resources.

Lien properties, especially those with a tax, judgment, or mechanic's lien, indicate that the property owner may be in financial trouble and looking to sell for less. Finding lien properties can get you closer to the investment property of your dreams. The trick is finding them before anyone else does. Use the resources below to locate lien properties and contact the owner to see if they would be willing to sell.

County Recorder of Deed's Office

Pennsylvania's county recorder of deed offices is in charge of public records, including lien filings and foreclosures. You can find a lot of information from these offices. Visit the county recorder of deed's office in person to request records (they may charge you a small fee for copies), or you can search using their website. Start with these below:

• Delaware County Property Records Search Tool
• Centre County Web Information Access (WEBIA)
• Chester County - Eagle Web Portal
• Chester County Recorder of Deeds Search Tool
• Cumberland County Land Records Search Portal
• Luzerne County - Landex Search Tool

Municipal & State Tax Collector's Office

When homeowners don't pay their annual property taxes, the municipality can impose a tax lien and eventually foreclose and sell the property at auction. Before that happens, you can locate tax lien properties and make the owner an offer. You can find tax lien information with the local county tax assessor or tax collector's office.

• Chester County Tax Claim Bureau
• Cumberland County Delinquent Real Estate Tax Database
• Delaware County Tax Claim Bureau
• Montgomery County Upset Sale/Tax Lien Properties
• Westmoreland County Tax Sale Information

Commonwealth of Pennsylvania Department of Revenue

When someone has unpaid taxes, the Department of Revenue files a lien with the local prothonotary's office. You can obtain a list of recent filings from the Commonwealth of Pennsylvania. They have an entire website with information and contact details to get a copy of the list.

County Prothonotary Office

The county prothonotary's office is responsible for filing, storing, and distributing public records of civil court cases. This office acts as the county court clerk and can provide you with documents related to lawsuits, divorces, custody cases, mortgage foreclosures, liens, and other property-related items. Use the links below to access these offices in Pennsylvania:

• Cumberland County Courthouse
• Franklin County Prothonotary
• Lancaster County Prothonotary
• Mifflin County Prothonotary
• Pike County Courthouse
• Schuylkill County Courthouse

Use a Title Company or Real Estate Attorney

Title companies and real estate attorneys assist with real estate sales by performing a deep title search. These searches include looking for liens and other encumbrances that could derail the sale. You can enlist the help of a local title company or real estate attorney to search properties to find those with recently filed tax, mechanic's, or judgment liens and then contact the owners and make an offer. Some to try are:

Pennsylvania Title Companies

• J&A Abstract Inc.
• Pennsylvania Land Titles
• Penn Title Company
• World Wide Land Transfer

Pennsylvania Real Estate Attorneys

• Caputo & Mariotti Law Offices
• Chambers and Partners
• Rabinovich Sokolov Law Group
• Stone, Lafaver, & Shekletski

Local Building Assessor's Office

Sometimes, you can even find lien properties through the building assessor's office. Building permits and licenses will include that information. You can visit the office in person or use their website to search for building permits, which are public records. Try these offices below:

• Allegheny County Property Assessments
• City of Philadelphia Office of Property Assessment
• Cumberland County Property Assessment
• Delaware County Property Assessment
• Erie County Property Assessment
• Lancaster County Property Assessment
• Luzerne County Assessment Office
• York County Assessment Information

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.

The later stages of bankruptcies and foreclosure liens result in the creditor, courts, or government office selling the property at auction to pay off the debt. Attending these public auctions can be a great way to pick up distressed properties cheaply, turn them around, and sell them for a profit. Many are in great shape; the owner just owes a debt they cannot pay. You can sometimes locate bankruptcy properties before they go to auction. Some ways to find bankruptcy and lien property sales 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 Pennsylvania 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 Prothonotary

The local prothonotary acts as the county court clerk and can provide you with a listing of recent lien filings and bankruptcies. When you visit the courthouse, you can even use the self-help workstation to pull up the files you need. You may need to pay a small fee for each copy. Start by using the list of prothonotary offices above.

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.

Pennsylvania Bankruptcy Courts

Visit any federal bankruptcy courts in Pennsylvania, such as the United States Bankruptcy Court in the Eastern District of Pennsylvania. You can visit in person or search their case locator tool to find the records you need.

Pennsylvania Department of Revenue

The Pennsylvania Department of Revenue has a public lien list that you can download at your convenience, which may help you identify homeowners who might be willing to sell below market value.

Tax Claim Bureau

The county tax claim bureau is responsible for keeping track of delinquent taxpayers and lien properties. For example, Chester County Tax Claim Bureau holds an Upset Tax Sale each year to sell off property that is delinquent with property taxes. Some other tax claim bureaus to check out are:

• Bucks County Tax Claim Bureau
• Fayette County Tax Claim Bureau
• Lackawanna County Tax Claim Bureau
• Montgomery County Tax Claim Bureau
• Venango County Tax Claim Bureau
• Westmoreland County Tax Claim Bureau

How to Navigate the Local Tax Claim Bureau Website to Request Records

• Visit the local county tax claim bureau website, for example, the Erie County Tax Claim Bureau.
• Click on Repository List.
• This will show you a listing of the tax-defaulted properties on file.
• You can also choose Tax Sales from the right-hand menu to see notices of upcoming auctions where properties on the list will be sold.
• Alternatively, you can use the contact information to either call for details or visit the office in person.

Lien Sale Notices in Local Newspapers

Although you won't find bankruptcy listings in the newspaper, you will discover lien notices and auction sales. By law, the selling entity must post these notices in the local newspaper at least three weeks before selling the property. Use the list of Pennsylvania newspapers above to start, or use the links below to keep an eye out for any mention of auction sales.

• Bucks County Upset and Judicial Sales
• Erie County Tax Sales
• Indiana County Property Tax Auctions
• Montgomery County Upset Sale Notice
• Monroe County Judicial Tax Sales
• Wayne County Repository Tax Sales
• Westmorland Tax Sale Information
• York County Tax Lien Sale Information

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.

County & City Website Notices

Use the links in previous sections to check for any mention of tax lien sales, bankruptcies, or distressed property auctions. You can visit the county website; sometimes, they have auction listings on the sidebar, so you can find them easily. Other times, you may have to dig a little bit deeper into the website to find what you need.

Attend Public Auctions and Sheriff's Sales

Tax lien properties are often sold at auction through the county sheriff's office or even the city's, like this one: Philadelphia Sheriff's Office Tax Sales. Pay close attention to local county sheriff's office websites (use the full list above) to find out about auctions early and attend to beat the competition.

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

Realtors, government offices, media outlets, and companies use social media to get the word out. You can follow certain distressed realtors, title companies, sheriff's offices, and others online to determine when auctions will be held in your area. The more you follow, the better your exposure to upcoming auctions in Pennsylvania. Use the lists above of real estate attorneys, county offices, and others. Search for them online and set up notifications so you get an alert when they post something new.

Consult Real Estate Agents and Brokers

Real estate agents may take on clients who are selling property due to liens or bankruptcy. You can connect with those specializing in distressed property and ask these agents to alert you when a new lien or bankruptcy property crosses their desk. These can be great resources for finding distressed properties before anyone else does.

Hire a Title Company or Real Estate Attorney

Use the list of title companies or real estate attorneys above and contact them regularly to check to see if they know of any bankruptcy properties or liens filed. These professionals may have access to information not available to the general public.

When a homeowner cannot pay their mortgage, the first step is for the lender to send them a notice of default. From there, things worsen, and eventually, the lender can foreclose and sell the property out from under them. Before the auction, the lender may offer some mitigation solutions. The homeowner may agree to a short sale if they cannot re-negotiate the mortgage terms or the property owner simply cannot pay. A short sale results when the lender helps the owner sell the house for far less than market value, typically for the outstanding loan balance.

These houses sell quickly due to their price point. The lender may help with advertising, hiring realtors, and paying other expenses so they can recoup their losses. Short sales can be an investor's dream. The key is finding them quickly before your competition does. Some ways to find short sales in Pennsylvania include:

Check Out Bank and Lender REO Listings

During a foreclosure auction, the lender who seized the home can bid up to the full amount due on the loan plus interest and late fees. If no one bids higher, the lender wins, and the property becomes real estate owned (REO). The best way to find short sales is to contact local banks or check their online presence for REO listings. Some banks to explore in Pennsylvania are:

• Fulton Bank
• Citizens Bank
• Chase Bank
• M&T Bank
• First National Bank
• Customers Bank
• PNC Bank
• Philadelphia Federal Credit Union
• Northwest Bank

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.

When someone dies even with a will, their estate usually ends up in probate, where the court must appoint an executor to carry out the wishes of the will and ensure that the estate is passed on to beneficiaries as the deceased intended. During the process, if the estate has debts, the executor may decide to sell off property to pay them off. Probate cases are a great way to find a distressed property and potentially find an off-market deal. Some places you can find probate properties are:

Register of Wills, Court of Common Pleas

Pennsylvania uses a rare unified court system, and it makes finding the right court easy. Visit the Unified Judicial System of Pennsylvania and review the list of county registers of wills to find the one you need.

Local Obituaries

Another place to find potentially distressed properties is to peruse the local obituaries. Check daily newspapers for recently deceased people; then, you can do some research and find out if they own property and contact the probate court for more information. Some to peruse are:

• Legacy Obituaries
• Current Obituaries
• Echovita Obituaries
• Patriot News Obits

Local Funeral Homes

You can also check with funeral homes to find recently deceased people and ask about their property holdings. You can then cross-reference that information with other public records and contact the family to see if they want to sell the property. Some local Pennsylvania funeral homes include:

• Pennsylvania Burial Company
• Hoffman Funeral and Cremation, LTD.
• Robert L. Snyder Funeral Home and Crematory, Inc.
• Connell Funeral Home Inc.
• Morello Funeral Home Inc.
• Behm Funeral Homes, Inc.

Local Auctions

Use the list of local auction houses, sheriff's office auctions, and government office websites to find local auctions that may be selling off probate properties.

Local Realtors & Lawyers

Contact local realtors and real estate attorneys (use the lists above) to ask if they know about any probate properties that might be coming up for sale. You could find an off-market diamond in the ruff.

The best option for finding and buying distressed property is public auctions. People trying to offload excess property sell them through auction houses, the county sheriff's office, and other venues. Some ways to locate these auctions include:

Private Auction Houses

Government agencies, realtors, the courts, and others call on public auction houses to sell real estate for them and handle all the details. You can typically visit these private auction house websites and find the schedule of upcoming events. You can even register online and read over the rules. Be sure to bring cash when you attend. Some local Pennsylvania auction houses include:

• Kline, Krieder, Good Auctioneers
• H.K. Keller
• PA Auction Center
• Kleinfelter's Auction
• Alderfer Auction
• Legacy Auction & Realty
• Hurley Real Estate & Auctions

State or City Resources

Municipal tax sites, recorder's offices, the courts, and sheriff's offices regularly post notices about upcoming real estate auctions on their website. Use the links throughout this article to check in and find auctions to attend. Register early and always have the cash on hand to make an offer quickly.

Online Auction Platforms

You can also check out online auction platforms that advertise upcoming realty auctions. Some even stream the event online, and you can bid from the comfort of your own home. Some options to check out include:

• Auction.com
• AuctionZip
• Hubzu.com
• ServiceLink Auction
• Xome

Local Newspaper Auction Ads

Auctioneers and sheriff's departments advertise in the local newspaper to spread the word to as many bidders as possible. Regularly check the notice and classifieds section of the local newspaper. Use the links above or dig deeper for more remote papers advertising real estate sales.

Real Estate Agents

Local real estate agents may also have a hand in helping to reach a wider audience for a real estate auction. You can contact them and ask if they know of any. They may have early access to some that are not yet listed. You might even get a leg up on the competition.

The most common reason why distressed properties are sold is because of financial issues to free up cash to pay off debts. Although there are others, selling distressed property usually involves avoiding foreclosure and the complete loss of any equity. Over the past couple of years, Pennsylvania has seen the highest number of distressed properties in the entire county. The foreclosure process in Pennsylvania takes as much as 1,692 days. The average number of abandoned homes in Pennsylvania is 38,691, which is 3.71% of all investor-owned properties.

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

Distressed properties come with some challenges, but they still present an ideal opportunity for some buyers. Those that are interested in finding distressed properties include but are not limited to:

Real Estate Investors

Real estate investors seek out distressed properties in good condition. It's important to weed out those requiring extensive repairs and maintenance to find those with financial issues that have been kept up well. Some real estate investors in Pennsylvania include:

• New Western
• Philly Home Investor
• D&Y Real Estate Investors LLC
• Prosperity Real Estate Investment Services
• Diversified Real Estate Investor Group

First Time Homebuyers

First-time homebuyers often look for cheaper homes in nice areas. These include distressed properties with encumbrances and liens that must be paid off before the sale. New buyers might be willing to invest the extra time and effort in a distressed property to save money and get into a larger home for less. Roughly 24% of all homebuyers in Pennsylvania are first-time buyers.

Nonprofits

Pennsylvania has a large number of nonprofit organizations. At any given time, there are roughly 63,345 nonprofits, all of which need space to run their operations. Nonprofits usually have a tight budget and can't spend much on real estate. They look for distressed properties that are in good shape or need a little TLC to make them usable. They save money and get a great place to run their business.

Developers

Commercial developers may buy distressed properties to use the land for another purpose. Some buy to acquire rental properties, and still others may choose to pick up commercial real estate cheaply, upgrade it, and use it to house low-income families, disabled adults, or others with special needs.

Wholesale Companies

Real estate wholesalers also seek out distressed properties to buy cheap and sell for a profit. These companies often offer cash to make the deal more desirable, and they target people in financial trouble. Some Pennsylvania real estate wholesalers include:

• We Buy Ugly Houses
• The Easy Home Offer
• BiggerPockets
• Real Estate Bees
• House Cash In