How to Find Distressed Properties in Alabama

Distressed is a misleading term when it comes to property. It implies that all distressed properties are in poor shape and need repairs. They do not. Some distressed properties are in perfect shape and only for sale due to the owner's financial issues. Alabama distressed properties can be an excellent investment. You can find distressed properties through a wide variety of sources, many of which are government entities, some public resources, and others private commercial options. County deed recorders, county tax officials, local newspapers, the courts, real estate companies, and other property-related businesses can help you find these diamonds in the ruff.

Most distressed properties end up for sale through foreclosure or pre-foreclosure. By the time it gets to foreclosure, the auction is set, and the house is ready to sell. Pre-foreclosure is the period before foreclosure when a property owner may be willing to sell for far less than fair market value. Finding pre-foreclosure and foreclosure homes could get you closer to your goal of investing in distressed property. Some ways to find foreclosure and pre-foreclosure homes are:

Property liens often lead to foreclosure and distressed property. Combining information from liens with other public records, you can sometimes accurately determine when a home is heading towards pre-foreclosure and be the first one to acquire it. The trick is knowing where to look for these types of properties. Use the resources listed below to identify Alabama lien properties.

County Probate Court

Liens are filed with the local probate court in the county where the property lies. Many probate court websites have an area where you can search for lien records. You can also visit the courthouse in person and request a copy of the title (deeds) and lien records. Some places to start include:

• Autauga County Probate Court
• Jefferson County Probate Court
• Mobile County Probate Court
• Montgomery County Probate Court
• Russell County Probate Court
• Walker County Probate Court

You may need to create a free login account before conducting a records search with some of these courts.

Alabama Department of Revenue

The Alabama Department of Revenue also keeps a copy of all liens filed in the state. You can request copies of public records, including liens, by downloading the PDF request form and submitting it to:

Public Record Requests

Alabama Department of Revenue

50 North Ripley Street, Room 4131

Montgomery, AL 36132-8510

Alternatively, you can email the completed form to public.records@revenue.alabama.gov. You can also search their website for "tax delinquent properties" to find lien properties for sale.

The Alabama Department of Revenue also has lists by county of properties that are delinquent on taxes and may soon be up for sale by auction. You can click on the county you are interested in to view a list. If you don't want to wade through all the lists, you can use the search feature on that page.

Alabama Secretary of State

The probate courts file a copy of all liens with the Alabama Secretary of State. The office has a search feature on its website where you can search for land records and statutory filings to find recently filed liens. You can search for property liens by name, county, range, section, book or page number, or address. You could also request the records by completing their online records request form.

Use a Title Company or Real Estate Attorney

Title companies and real estate attorneys perform title searches before real estate deals, looking for any liens or other encumbrances that might affect the sale/transfer. If you have an existing relationship with any, you could contact them and ask them for a list of properties with recent liens filed. Or you could develop new connections and hire one of them to work for you, alerting you to any new filings. Some title companies and real estate attorneys to use in Alabama include:

Alabama Title Companies

• Alabama Closing and Title Company LLC
• Alabama Land Title
• East Alabama Title
• Land Title Co of Alabama
• North Alabama Title & Escrow
• Steward Title of Alabama, LLC

Alabama Real Estate Attorneys

• Clark Law Firm
• David Snoddy Attorney at Law
• Kristi C. Fuller Law, LLC
• Sarah S. Shepard, Attorney at Law
• Law Offices of Jeff W. Parmer, LLC
• Prim & Mendheim, LLC

Third-Party Online Databases

Another option is to use the list of online databases above to find real estate that is on sale due to a lien or foreclosure. Another option is using the GovEase website to find tax lien auctions or talk with the sales department about upcoming properties.

Bankruptcies are also public records. When someone files for bankruptcy, the process often leads to the sale of property to fund the payoff of debts. Property owners usually take far less than fair market value to eliminate the financial burden quickly. Finding bankruptcy and lien property sales can be a good starting point for finding the perfect investment. Some ways to find these types of distressed properties 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 Alabama 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 Probate Court

You can search for lien property sales through the local Alabama probate court. They are the repository for deeds, liens, mortgages, and other property records. Most local probate court websites have a built-in search tool. You can search by address, owner name, parcel ID, etc. Some local probate court search tools to check out include:

• Coffee County Probate Records Search
• Madison County Records Search
• Mobile Probate Court Records - Landmark WEB
• Montgomery Probate Court Records Search
• Shelby County Records Search
• Tuscaloosa County Probate Records Search

How to Navigate the Local Probate Court Website to Request Records

• Visit the local county probate court website, for example, Coffee County.
• Click "View Records Online".
• Click "Look up Land Records" or "Look Up Probate Case Records".
• Create an account if you don't have one already.
• Log-in.
• Perform as many searches as you want, changing the search criteria each time.

Alabama Department of Revenue

The Alabama Secretary of State has a search tool on its website where you can find tax-delinquent properties (liens) to purchase. You can narrow your search by county, CS number, parcel number, or owner name. If you prefer to see a listing of all tax-delinquent properties, you can view them by county.

Alabama Secretary of State

Land records, liens, and tax-delinquent properties can be found on the Alabama Secretary of State's website. You can search by name, township, range, section, or book page and number.

Local Tax Revenue Office

Local Alabama revenue offices also advertise tax sales on their websites. For example, the Houston County Local Revenue Office has details about upcoming tax sales, registration, the bidding process, and details about purchasing distressed property. Some others include:

• Calhoun County Revenue Commission
• Dale County Revenue
• Jackson County Revenue
• Jefferson County Tax Collector
• Mobile County Revenue Commission
• Morgan County Revenue Commissioner
• Walker County Revenue

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

Lien notices and foreclosures are listed in local newspapers in Alabama. You can regularly check the classifieds and real estate sections to find them. Use the list of local newspapers above to find what you need. One example is the Calhoun Journal, which displays notices of real estate auctions on its home page.

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

Some counties and other government agencies also post tax lien sales on their websites. You can use some of the resources below to find lien property sales:

• Alabama Association of Tax Administrators
• Alabama Public Notice
• Cherokee County Online Tax Line Sale
• Journal Record Delinquent Tax Sales
• St. Claire County Revenue Tax Lien Notice

Attend Public Auctions and Sheriff's Sales

Public auctions and sheriff's sales are the best way to purchase distressed property. Be sure to bring enough cash and bid higher than anyone else to win the property. You can sometimes find really great deals in perfect condition and pay only the back taxes or amount left on the mortgage. Use the list of sheriff's offices above to start looking or use the public auction houses listed below and give them a try. These resources can be your best option when searching for distressed properties.

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

Government offices, sheriff's departments, auction houses, and realty professionals may use social media to spread the word about upcoming bankruptcy or lien sales. Most have social media accounts, and you can "follow" them to receive alerts when they post something new. You can then DM (direct message) them to inquire more. You may see news of upcoming auctions and links to register to attend. For example, Alabama Off Market Real Estate posts regularly on their Facebook account.

Consult Real Estate Agents and Brokers

Some real estate agents and brokers specialize in distressed property and could be your best asset in helping you find the perfect fit. They usually have exclusive information not available to the general public and may be able to fill you in before the competition. Some Alabama real estate brokers who offer distressed properties include:

• Duratus Properties
• Gulf Shores Alabama Short Sale Specialist - ReMax Orange Beach
• Katrina Washington Stewart
• Paul Holley - Century 21
• Sandra Nickel

Specialty Websites - Distressed Properties

Some websites specialize in distressed properties and provide public notices of auctions in local counties. One example is the Daily DAC (Distressed Asset Central), where you can find news of upcoming auctions and distressed properties for sale. LOGS Legal Group is another platform that provides the public with notices of lien properties and sales. Also, check out LandSearch.

Hire a Real Estate Attorney

Some real estate attorneys work exclusively on bankruptcy and distressed property cases. They have insight into off-market properties that you could purchase without any headaches. Contact some local real estate attorneys in Alabama and develop a relationship so that when a new lien situation arises, they alert you first so you can get a jump on things. Use the list of real estate attorneys earlier on this page to get started.

Short sales result when a property owner cannot pay their mortgage, and the lender starts foreclosure. The law requires lenders to offer some mitigation options. If they cannot agree on loan modification terms, the lender may offer to help with a short sale. The bank may pay to advertise the property and pay for the realtor, title company, and closing costs to sell the property quickly so they can get their money back. The property is often sold for the amount due on the loan plus any interest and late fees. That means you can cheaply pick up a distressed property to sell for profit. To benefit from this situation, you must locate short sales in Alabama. To do so, check out the following resources.

Check Out Bank and Lender REO Listings

Mortgage companies, banks, credit unions, and other lenders may be working with property owners to sell their homes below market value right now. You could tap into a great deal if you contact the right bank at the right time. If the lender has already foreclosed and held an auction, they may own the property. By law, lenders are allowed to bid as much as the outstanding balance on the loan. If no one bids higher, they become the owner, and the property is labeled real estate owned (REO). Contact the lenders below and ask for the real estate department or REO representative. Ask if they have any properties they are looking to sell or any short sales in the works.

• Bankrate
• New American Funding
• Veterans United
• Southpoint Bank
• NobleBank & Trust
• Merchants Bank of Alabama
• Oakworth Capital Bank
• BankFirst
• Hometown Bank of Alabama
• First Community Bank of Central Alabama
• Exchange 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.

After someone dies, even if they have a will, their estate must be processed through probate (in most cases). The courts appoint an executor to manage the estate, pay off any debts, and sell off property to free up funds. Probate properties often sell for much less than fair market value because the executor/courts or heirs want them sold quickly for cash. You can usually pick up probate properties rapidly and easily for less. The trick is finding them. Use the options below to locate probate properties and make an offer.

Alabama Probate Court

The best place to start is the local county probate court. Deeds, liens, mortgages, and probate records are all filed there. You can visit the office in person. Many of them also have an online search tool where you can search for property records like probate cases. Another tip is to contact a staff member in the records room. They may have even more insight on where to look for fresh probate properties. Many of the probate courts use Landmark WEB for record storage, and you must register for a free account to access them.

Local Obituaries

To get a head start on locating probate properties, you can check local obituaries from the newspaper or online sites like Al.com and combine that information with other public records to see if the deceased owned property and what might become of it. Some other places to look are:

• Legacy Alabama Obituaries
• TimesDaily
• Obits Archive

Local Funeral Homes

Local funeral homes are also a good bet for finding probate properties. They will handle the funeral and services and may also post the obituary and know the family situation. They might have exclusive information on how the family intends to dispose of the property. You can either call them or visit their website to review the obituaries. Some local funeral homes to check out in Alabama include:

• Alabama Funeral Homes and Cremation
• Community Funeral Home
• Peck Funeral Home
• Peoples Funeral Home
• Tributes Cremation Services of East Alabama

Local Private Estate Auctions

Sometimes, the family or court-appointed executor will hold an estate sale or private auction. If you can attend, you could pick up probate properties cheaply to sell later.

• Alabama Estate Sales
• Estate Sales & Estate Auctions
• Estate Sales Dot Net
• Weiss Lake Auction

Local Realtors & Lawyers

Both realtors and lawyers are involved in estate matters. If you use the lists above and contact local realty professionals or real estate attorneys, you might find they know of some available probate properties for sale.

Real estate auctions are an ideal way to find the distressed property you want. First, you must identify the best auctions for you, register early, read the rules, and then attend and bid. Be sure to bring plenty of cash with you. Most are cash-based sales; you must pay for them at the auction. Some ways to find real estate auctions in Alabama include:

Private Auction Houses

Everyone from government offices and the courts to private families hire auction houses to run the entire auction from start to finish. These professional companies advertise the auction and homes (on realty sites), schedule the auction, take registration, and handle closings. Some auction houses in Alabama to check out include:

• Davis Realty & Auction
• Dempsey Auctions
• Heritage Realty & Auction Company
• High as the Sky Estate Sales and Auctions
• Horton Auction & Real Estate
• Fowler Auction & Real Estate Services
• Southern Auction Solutions
• Target Auction Company
• Weiss Lake Auction

State or City Resources

Don't forget to regularly check the local county website, sheriff's department websites, Alabama Department of Revenue, probate courts, and local revenue department websites for notices of upcoming auctions. Many post it on their homepage, a sidebar, or a special section for upcoming distressed property auctions. See the links above that take you to these websites. One such agency is the Alabama Department of Economic and Community Affairs (ADECA).

Online Auction Platforms

Another place to look is online auction platforms. These websites show auctions from all over the country, and you can find auction properties by narrowing your search by state, county, town, and area. Some to investigate include:

• Ten-X
• Xome
• Auction.com
• Hubzu

Local Newspaper Auction Ads

Check local newspapers (the ads section) for any auction houses, government offices, or tax authorities who may be holding an upcoming real estate auction. Also, check your favorite local newspaper's classifieds and real estate sections.

Real Estate Agents

Contact local real estate agents with whom you have a relationship and ask if they know of any distressed property auctions in the area. These professionals will most likely have the most updated information and can provide you with some insight.

Alabama's Distressed properties are often sold to recover financial losses incurred by lenders, tax offices, or creditors. With probate properties, the family may want to sell the house to get rid of it (no one wants it) or free up cash to split. When couples divorce, they may want to get rid of the home to let go of any memories associated with the property.

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 distressed properties do not appeal to everyone, specific individuals, groups, and organizations actually desire distressed properties due to their lower prices and potentially easier sales. Some entities who seek out distressed properties to buy include:

Real Estate Investors

Real estate investment firms are the most common buyers of distressed properties. They purchase cheap properties and fix them up to sell or rent. Check out the list of real estate investors above to see if they have any second-hand properties they want to sell.

First Time Homebuyers

The Alabama Housing Finance Authority (AHFA) offers some great deals to first-time homebuyers with special mortgages and affordable loans. Taking advantage of one of these deals and finding a distressed property in good condition could get a young couple into a larger home in a nicer area for less. First-time homebuyers are often willing to deal with the hassles of a distressed property and invest some work into fixing it up to get more in the long run.

Nonprofits

Alabama has 18,374 nonprofit organizations. These organizations typically work to better the lives of others, but they don't make much money. Therefore, when they need housing for their operations, they may turn to distressed properties to find affordable and good-condition ones. Many perfect-condition commercial properties have become available for purchase. Commercial foreclosures have increased by 117% nationwide year after year.

Developers

Real estate developers invest in distressed properties where they see an opportunity. They may purchase entire neighborhoods of homes to fix them up and sell them later, or they may buy the land and use it instead of the buildings. Some purchase distressed properties to invest in the community by providing affordable housing to the elderly, disabled, or low-income families.

Wholesale Companies

Real estate wholesalers also buy distressed property. They target people in financial trouble in the foreclosure or pre-foreclosure process. They closely monitor tax liens and offer cash for houses and quick sales. Many homeowners will jump at the chance to get out from under the issue because these companies buy homes "as-is" without any maintenance required. Some wholesale companies in Alabama include:

• Alabama Real Estate Deals
• Alliance Wealth Builders
• First National Realty Partners
• House CashIn
• Real Estate Bees
• We Buy Ugly Houses
• We Buy Houses in Bama