How to Find Distressed Properties in Virginia

Virginia distressed properties can be a great investment opportunity if you know where to look. Many of these properties are in great shape and are only being sold for less due to the owner's financial difficulties. Using public property records, you can find out a tremendous amount about a property and identify those that might be for sale under special circumstances. You can find distressed properties using government and public sources. County and municipal resources are a common way to locate distressed property. You might also find records with the city and state offices, plus the sheriff's department. Some public options are newspapers, lawyers, realtors, and public auctions. Use the information below to find distressed properties in Virginia.

Foreclosures are the most common types of properties selling for less than fair market value. Once the creditor, lender, or government office forecloses, they can sell the property at auction. Before that, there is a period called pre-foreclosure, during which the owner has some time to solve the problem. It's an optimal time to contact them and make an offer. You can find foreclosure and pre-foreclosure homes using the following sources.

Liens often result in foreclosure. When a property has more than just a mortgage lien, you can bet it will end up in foreclosure. Searching for liens could lead you to foreclosure properties before it happens. You could be the first one in the door if you are diligent. Some places to find lien properties include:

Virginia Department of Taxation

The Virginia Department of Taxation is the website for all things tax-related. They have a powerful search tool where you can search for recently filed tax liens and properties that may be headed toward foreclosure.

Circuit Court Clerk's Office

Some types of liens are filed through the circuit court clerk's office. You can contact these court clerks to request records of recently filed liens. You can also use the court website to perform a search. Each county has its own circuit court, so you may have to bounce around a bit to find what you need. Try some of the links below:

• Campbell County Records Search
• Chesterfield County Clerk of the Circuit Court
• Fairfax County Circuit Court Records
• Fauquier County Court Clerk of Records
• Matthews County Circuit Court Search
• Montgomery County Court Case Information
• Prince William County Court Case Information

Virginia Clerk's Information System (CIS)

You can also use the state's Clerk's Information System to search for property records and find lien properties. You may need to sign up for an account before using this tool.

Use a Title Company or Real Estate Attorney

Another way to locate lien properties in Virginia is to hire a title company or real estate attorney. These professionals use specialized tools to run a deep background check on a property before it is sold. Anything in the search, like encumbrances, legal issues, title defects, or other problems, must be resolved before the sale can close. You can hire these companies to work for you, researching lien properties and identifying properties that might be in financial trouble. Try some of these Virginia resources to get started.

Virginia Title Companies

• All-Virginia Title & Escrow, Inc.
• Heritage Title Co. of Virginia
• Northern Virginia Title and Escrow
• Old Virginia Title
• Stewart Title & Escrow Inc.
• Virginia Home Title & Settlement
• Virginia Title Center LLC.

Virginia Real Estate Attorneys

• Fox & Moghul Law
• Harvey & Driggs, PLC
• Kane Jeffries LLP
• Patel & Dalrymple, PLLC
• Shaheen Law Firm P.C.
• The Law Offices of Keith C. Martin PLLC
• The Law Offices of Kidwell & Kent

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.

People in desperate financial trouble often turn to bankruptcy. The court-centered process involves a judge and other players who work with the person to devise a repayment plan to pay off all their debts. The court may appoint a case manager who decides that the individual must sell off the property to pay the debts. Usually, the person's living quarters are protected, but if they have other properties, they must sell them. These properties are an excellent opportunity for investors. Some ways to find bankruptcy properties or tax lien sales in Virginia include:

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 Virginia 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 Virginia

When filing for bankruptcy in Virginia, the person must appear in court. They can do so by visiting one of the district bankruptcy courts. You can visit these courts in person to ask for a list of recently filed bankruptcies or search for case files on the website. The districts that appear in Virginia are as follows:

• Eastern District of Virginia Bankruptcy Court
• Western District of Virginia Bankruptcy Court

Virginia Department of Taxation

Contact the Virginia Department of Taxation office and ask for an updated list of Virginia's most recently filed tax liens. You can also search their website for these files.

County/City Websites

Tax lien sales are often posted on county-level websites. Regularly check the various county/city portals to ensure you don't miss a notice of an upcoming tax lien sale or foreclosure auction. Use the links below or any of those above to get going.

• Arlington County Property Sales
• Botetourt County Delinquent Tax Sale
• City of Chesapeake Tax Lien Sales
• City of Roanoke Tax Sale
• Dinwiddie County Tax Sale
• Fairfax County Real Property to be Auctioned
• Frederick County Tax Sale
• Hanover County Delinquent Tax Sale
• Loudoun County Tax Sale
• Nelson County Tax Auctions

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 court filings.

Lien Sale Notices in Local Newspapers

Before holding a tax lien auction, the government office may post an ad in the local newspaper to widen the audience. They want as many bidders as possible to get rid of the properties and sell for as much as possible. Use the list of local newspapers above and check out the classifieds, legal, and real estate sections to find mentions of upcoming auctions or tax lien sales.

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

Attend as many auctions as you can. The more you register for, the higher your chances of winning the perfect investment property. Look on county websites, newspapers, and other resources (see further down) to find sheriff sales and public auctions. Register early, read the rules and regulations, and have your cash ready.

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

Just about everyone these days uses social media to spread the word. Government offices, sheriff's departments, lenders, realtors, attorneys, and other real estate professionals use social media to announce distressed property sales. Don't overlook this valuable resource. You can often find private groups or pages like this one: "Foreclosure Sales Virginia." Join these groups or follow the pages to get notified when new posts are added.

Consult Real Estate Agents and Brokers

Real estate agents are experts in the field of realty and distressed property. Better than anyone else, they will be well-informed about any upcoming lien properties, foreclosures, or tax sales. You can consult local Virginia realtors and brokers for tips on how to find the best distressed property in the state. Some real estate brokers to try include:

• Lonnie Bush Real Estate
• Mission Realty
• Take 2 Real Estate
• The Collaborative
• The Glasser Group
• The Jenny Maraghy Team
• Virginia Capital Real Estate

Specialty Websites - Distressed Properties

Some websites specialize in distressed property and advertise unknown properties there. You can find some gems by scouring these unusual sources. Most have filters and sort features to find what you need easily. Check out these below to get started:

• Homes.com
• LandSearch
• Linton Hall Realtors
• LoopNet
• Nova Elite Homes
• PMI Virginia
• PropertyRadar
• Virginia Housing

Hire a Real Estate Attorney

Many attorneys work with bankruptcy clients to help them resolve their issues. These specialists may have much insight into finding distressed property due to bankruptcy or tax liens. You can hire one to work for you or form partnerships with them and help each other out. They can connect you with bankruptcy clients who own off-market properties and are willing to sell. Some real estate attorneys to start with include:

• Andrews Law Firm
• Homes.com
• Ashley F. Morgan Law Firm, PC
• Fisher-Sandler LLC.
• Slayton Law PLC
• The Law Office of Robert S. Brandt
• The Merna Law Group P.C.

When homeowners cannot afford to pay their mortgage, they can contact their lender for possible mitigation options. If the bank cannot modify the loan to satisfy the borrower's financial situation, it may suggest a short sale. In a short sale, the lender helps the homeowner sell the house quickly for the amount due on the loan, plus interest and late fees. This pays off the debt and allows the owner to avoid foreclosure. Some ways to find short sales in Virginia are as follows.

Check Out Bank and Lender REO Listings

The best way to find short sales is to contact banks and mortgage lenders. They are the primary source. Sometimes, these lenders seize property and hold an auction, but no one bids higher than the bank, so they become the legal owners. When this happens, the property is known as REO (real estate owned) or bank-owned. Contact local banks to see if they own any property or are in the process of foreclosing on property that you could bid on. Be sure to speak to their REO or real estate department when calling. Some banks in Virginia to try include:

• Burke & Herbert Bank
• Freedom Bank of Virginia
• First Bank of Virginia
• FVC Bank
• Northern State Bank of Virginia
• The Bank of Southside Virginia
• United Bank
• Virginia Credit Union
• Virginia National Bank

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

• Atlantic Bay Mortgage Group
• Aurora Financial
• Embrace Home Loans
• First Heritage Mortgage
• Monument Home Loans
• OVM with AnnieMac Home Mortgage
• Strong Home Mortgage
• Tidewater Mortgage Services

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 a Virginia resident dies, their estate will go through probate, which is a court-based process where a judge reviews the will and appoints an executor to ensure that the deceased's assets get distributed correctly. If there is property, the court may order the executor or family to sell it to pay off any debts. Probate properties sell for less than market value, making them a steal. You can find probate properties in the following ways.

Virginia Circuit Court

Check with the Virginia circuit court in the county where the person died to review probate records. If you find any with property, you can discretely contact the family to see if they are willing to sell. Use the circuit court links above to get started or the VA Courts website to search for probate properties.

Local Obituaries

Another way to find probate properties is to check local obituaries periodically. You can take that information and research other family members to contact and ask about any property they might be willing to sell. Check local newspapers first and then try these online obituary sources to start.

• Central Virginia Obits
• Cremation Society of Virginia
• Daily Press
• Echovita
• Legacy
• Obits Archive
• The Virginian-Pilot Obituaries

Also, check local funeral home obituaries. They usually post them online for all to see.

Local Funeral Homes

Funeral homes work with grieving families. Sometimes, they know the family well and may have inside information about the property and the proposed plan to deal with it. Contact local Virginia funeral homes to find probate properties or off-market opportunities. Try these Virginia funeral homes:

• Altmeyer Funeral Homes & Crematory Southside Chapel
• Craigsville Funeral Home
• Grundy Funeral Home
• Heritage Funeral Service & Crematory
• Jeffress Funeral Home
• Tharp Funeral Home and Crematory
• Virginia Funeral Home

Local Private Estate Auctions

Some deceased people's families hire a local auction house to sell their property. They may even sell the property themselves at an estate auction or through a realtor. Check the local newspaper or online ads for any private estate auctions in Virginia.

Local Realtors & Lawyers

Contact any local realtors or lawyers you know. Many of them work with probate issues and families who inherit property from loved ones. Use the lists of realtors and lawyers above to formulate connections with them so you are their go-to call when a new opportunity arises.

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 the place to be when searching for distressed property. You should attend as many as possible to increase your chances of finding a good deal. Use the following options to find these auctions. They may be initiated by government officials, courts, families, lenders, or real property professionals.

Private Auction Houses

Private auction houses handle everything regarding a property auction, including advertising, marketing, registration, rules, regulations, paperwork, fee collection, holding the event, and even transferring funds and closing. You can find auction mentions on these websites and even register online to attend. Try these to start:

• Atlantic Asset Management Group
• Ashland Auction
• Cannon's Auctions
• Jacobs & Co.
• Greenway's Real Estate and Auction
• Lucky Dog Auction Company
• Nicholls Auction
• Virginia Auction Company
• Watts Auction Realty Appraisers
• Woltz & Associates, Inc.

State or City Resources

Sometimes, states hold auctions for property they have seized for tax purposes, abandoned homes, or other reasons. You can find properties on city, state, county, and other local websites. Check out these links below or use those above to find auction properties.

• City of Newport News Real Estate Auction
• City of Norfolk Property Auction
• Fairfax County Property Auction
• James City Real Estate Auction

Online Auction Platforms

Online auction platforms are another great resource to use when looking for real estate auctions. These platforms often have sophisticated filters, options, and features that allow you to find what you want, contact the owner, or register for the auction. Some places to begin looking include:

• Auction.com
• Dixon's Auction
• eBIDLOCAL
• For Sale at Auction
• Hubzu
• Ten-X
• Tranzon Auction
• Xome

Local Newspaper Auction Ads

Most people also advertise their auctions in the newspaper. Check local Virginia newspapers (classifieds, ads, realty, and public notice sections) to find ads about upcoming distressed property auctions. Use the list of newspapers above or search to find your favorites.

Real Estate Agents

Sometimes, auction houses or government offices will contract with real estate agents to advertise local auctions. You can check online realty companies to see if they mention any distressed property or upcoming auctions. Some to try are:

• Double A Auction & Realty
• JW Shelton Auction & Realty
• Mountain City Realty & Auction
• Rogers Realty & Auction
• Spencer Group Real Estate Auctions
• Watts Auction Realty

In Virginia, distressed properties are most often sold to recoup financial losses. Someone loses money when a homeowner cannot pay their taxes, mortgage, or creditors. That entity will be motivated to get paid. The best way is to sell the property quickly at less than fair market value. Families sometimes sell the property after someone dies. Divorcing couples sell the property for less to sell it quickly. Those who need to move or cannot keep up with maintaining the house may sell it to get out from under a heavy mortgage or costly repairs.

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

The word distressed sounds ominous but doesn't always mean tragedy. It just means the property is discounted rather than sold at fair market value. That being said, it does not mean everyone wants to deal with a distressed property situation. Some types actually look for distressed property because of the opportunity to save money. Those who buy distressed property in Virginia include:

Real Estate Investors

Real estate investors buy distressed property to resell quickly for a profit. They may choose to buy an entire neighborhood of houses and turn it into something different. They have the resources to fix things up and sell them for fair market value. Some real estate investors in Virginia include:

• Connected Investors
• Global Real Estate Investment
• Maxsin Investment Group
• Mars Hill Realty Group
• Tom & Cindy Associates

First Time Homebuyers

More than 24% of all home buyers in Virginia are first-time buyers. These individuals want to save money, so they consider distressed properties an option. Buying a distressed home could get them into a really lovely house in a fancy neighborhood for less. It might be the difference between being able to afford it or not.

Nonprofits

Virginia has over 54,000 nonprofits. These companies generally pick a cause and try to improve the lives of others. Sometimes, they require real estate for their own operations or for those they serve. Since these organizations have limited budgets, they may look for distressed property they can afford. They may not worry about fixing it up; they may just be happy to buy it for less.

Developers

Land developers often buy distressed property and use the land. This may be especially true in commercial real estate. Since they aren't using the structures, they don't want to pay full price, so they look at distressed property. Some land developers in Virginia include:

• American Land Holdings LLC
• Blackwood Development Co. Inc.
• Country Land Group
• Rosyln Farm Corporation
• Stony Point Development Group
• Virginia Land Company Inc.

Wholesale Companies

Wholesale companies also buy distressed real estate. It may be their only target because of the price point. They offer distressed homeowners cash for their homes, hoping they will jump at it to avoid financial trouble. Many take them up on their offer even though they get far less than fair market value. These companies do not require anything from the owner; they don't have to fix things, make upgrades, or do anything except sign on the dotted line. Some Virginia wholesale real estate companies include:

• BiggerPockets
• House Cashin
• Liz Buys Houses
• New Western
• Real Estate Bees
• Sell My House Fast
• Virginia Real Estate Wholesalers