How to Find Distressed Properties in North Carolina

Some say North Carolina has the best weather in the U.S., making it a great place to invest in distressed property. Distressed property typically sells for far less than fair market value because of the owner's financial situation. These properties sell for various reasons, like foreclosure and tax liens. Knowing where to look for these gems is the trick to being a savvy distressed property investor. Some of these properties are in perfectly good shape and don't need a thing to re-sell. You need to look in different places to find distressed properties. Some of the locations include county and state resources, sheriff's offices, the courts, and public sources like newspapers, law firms, realtors, other investors, and public auctions. Use the sources listed below to find distressed property in North Carolina.

When homeowners cannot afford to pay their mortgage, taxes, or other creditors, they can end up in foreclosure and lose their house. Once the lender, tax official, or creditor takes the house to sell at auction, that is called foreclosure. Prior to that, the homeowner has some time to fix the issue. That is called pre-foreclosure. Pre-foreclosure is the sweet spot when investors can approach the homeowner and make a reasonable offer that they may jump at. Some ways to find homes in foreclosure or pre-foreclosure include:

Most properties have a mortgage lien, but when a property gets other types of liens like tax, judgment, and mechanic's liens, it usually indicates the owner's financial trouble. Lien properties are typically sold for the amount due of the loan, taxes, or debt, making it far less than fair market value and a real deal for an investor. Lien property sales are usually advertised in a few places to get the word out, so there may be some competition at these auctions. Doing some early research and finding out about properties with new tax liens could help you beat everyone to the punch. Use the resources below to find lien properties in North Carolina.

County Register of Deeds Offices

Each county's register of deeds is the repository for property records, including liens. Try a lien search using the county register of deeds website, or you can visit the office in person and request records. If you request documents, you must pay a small per-page fee. Some county lien search tools include:

• Davidson County Records Search
• Gaston County Records Search
• Guilford County Records Search
• Mecklenburg County Records Search
• Nash County Records Search
• Rockingham County Records Search
• Wake County Records Search

Clerk of Superior Court

Each county has a court system in North Carolina. You can search the North Carolina Judicial Branch Superior Court or contact the county court clerk in person to ask for lien records. They can supply you with copies of recently filed liens, and you can then contact the owner from there. Judgment and mechanic's liens are filed through the courts.

North Carolina Secretary of State

The North Carolina Secretary of State office also has a search tool where you can find deeds, liens, and other helpful property records. Use their FAQ page to learn more about these records and the types of information you can find there.

Use a Title Company or Real Estate Attorney

Before the sale of property, the closing agent (title company or real estate attorney) performs a deep dive into the property's history, looking for any issues that could affect the sale. They research liens, mortgages, other encumbrances, title issues, and more. You can contact these professionals to do this research for you in a specific area and help find lien properties that are ripe for sale.

North Carolina Title Companies

• 24-Hour Closing
• NC Title Center LLC
• North Carolina Real Estate Title Services
• Tyron Title Agency
• Statewide Title Inc.

North Carolina Real Estate Attorneys

• Bright Law, PLLC
• Jackson Law
• Love Law Firm PC
• North Carolina Real Estate Law Firm
• Raleigh Real Estate Law
• Taylor 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.

Bankruptcy is often a last resort for those in financial trouble. When a homeowner amasses too many liens on the property and cannot pay the mortgage, taxes, or creditors, bankruptcy can help alleviate the pressure. However, that does not mean they will keep their house. The courts often order the property owner to sell the property to pay off the debts. These bankruptcy and lien property sales provide another avenue for investors to find suitable real estate sales. Some ways to find recent bankruptcy filings 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, 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 North Carolina 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 North Carolina

The bankruptcy court is divided into districts in North Carolina. You can search these websites for bankruptcy and other property-related records or visit the court in person. Some links to try are:

• Eastern District of North Carolina Bankruptcy Court
• Western District of North Carolina Bankruptcy Court

North Carolina Department of Revenue

The North Carolina Department of Revenue oversees all county-level tax officials and regulates property tax assessments and rates. They have a list of all the tax liens in the state. You can contact them for this information.

County Websites

When the county imposes a tax lien, most likely, the house will be sold at auction. You can find these tax lien sales mentioned on county websites. They advertise to get people to register to attend and bid on properties. Some county website tax lien sales to investigate include:

• Buncombe County Current Tax Foreclosure Sales
• Chatham County Tax Foreclosure Sales
• Forsyth County Property Tax Foreclosure Sales
• Mecklenburg County Tax Foreclosure Properties
• Randolph County Tax Liens
• Union County Property Tax Foreclosures
• Wake County 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

Before a county sells a tax lien property, it must advertise it in the local newspaper. You can find these tax lien or foreclosure sales listed in the local newspaper's classified ads, public notices, or real estate sections. Use the list of newspapers above to find these notices. They will include the property address, a date, time, and location for the event, and information on registering and attending. You can also use the North Carolina Public Notices website to find some.

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

Attending public auctions and sheriff's sales is another surefire way to find and acquire distressed property. You can find these auctions using the diverse list of resources further down this page or check sheriff departments' websites to see when and where the event will take place. Use the links below to find sheriff sales in your area.

• Brunswick County Sheriff's Auctions
• Catawba County Sheriff Sales
• Carteret County Sheriff's Auctions
• Harnett County Sheriff's Office Auction
• Iredell County Sheriff's Sales
• Pender County Sheriff Auctions
• Rowan County Auctions
• Wake County Sheriff Sales

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 use the instructions provided.
• Bring cash and attend the tax sale.
• Bid & win.

Use Social Media or Online Platforms

County governments, sheriff's offices, realtors, lawyers, and other property professionals all use social media now to inform the public of what is going on. These agencies announce lien or tax sales online, and if you subscribe to the group or follow the company, you can find out before anyone else. For example, there is a private group called North Carolina Real Estate Community where professionals share information about real estate on Facebook. Follow your favorite title companies, realtors, and other agencies to find out fast when a new distressed property hits the market.

Consult Real Estate Agents and Brokers

Real estate agents and brokers are another great resource to tap when you are looking for bankruptcy or lien properties. These agents work with private individuals, counties, government agencies, and others to help sell distressed property. They may have tips on how to find exclusive off-market properties for a steal. Try some of these agents to begin:

• All Good Real Estate, LLC
• A. Cole Realty
• Carolina's Choice Real Estate
• Carolina Real Estate Experts
• Living NC Real Estate
• Marti Hampton Real Estate
• Stone Realty Group

Specialty Websites - Distressed Properties

Some states use specialty websites to advertise distressed properties for sale. Don't overlook these helpful resources. Many offer filters so you can narrow down your search to find just what you need. A few to check out include:

• Absolute Realty Company, LLC.
• Five County Specialists
• Freestone Properties
• Triangle House Hunter

Hire a Real Estate Attorney

As mentioned before, real estate attorneys work with various types of property owners to sell distressed property. They have vast resources and valuable insight. You can hire one of these attorneys to help you find the deal you are looking for, whether for resale or rental. Use the list of real estate attorneys above to get started.

People facing foreclosure are generally open to solutions. One solution is to allow their lender to help them sell the property in a short sale. The bank helps with advertising, realtors, holds auctions, and handles the closing fees and paperwork. Typically, the house is sold for the amount due on the loan plus interest and fees, which is usually less than fair market value. Short sales are a great way to invest in distressed property. The trick is finding these properties before anyone else does. Use the resources below to identify and move on short sales in North Carolina.

Check Out Bank and Lender REO Listings

When banks foreclose on properties, they usually try to sell them at auction. The lender is allowed to bid as high as the total outstanding plus fees and interest. The property becomes bank-owned or real estate owned (REO) if they are the highest bidder. Once they win the property, they still need to get rid of it to get back their money. They may sell it privately, through a realtor, or at another auction. Contact local banks and ask to speak to their REO or real estate department to see if they have any properties for sale or any upcoming off-market properties. Try the banks below to get started.

• Bank of America
• PNC Bank
• Ally Financial
• Truist Financial
• Chase Bank
• Wells Fargo
• Fifth Third Bank
• Fidelity Bank

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

• Carolina Ventures Mortgage
• Fairway Mortgage Carolinas
• Martini Mortgage Group
• Mecklenburg Mortgage
• Raleigh Mortgage Group
• Triangle Lending Group LLC

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 in North Carolina, even if they have a will, their estate must pass through probate. That means the courts review the will and decide how to distribute the person's estate. Often, that means selling off property. The court will appoint an executor (a family member or court representative) to ensure the assets are disseminated per the deceased's wishes. Probate properties are usually sold below market value and can also be a great investment. Some ways to find probate properties include:

North Carolina Judicial Branch Court

Public probate court records are found at the North Carolina Judicial Branch. The court's website contains plentiful information about wills, estates, and how probate works. You can also search for court records on the website or visit it in person to ask the clerk for records. If you do, you may have to pay a small fee for copies.

Local Obituaries

A creative way to find probate homes is to regularly check the local obituaries in your area and pair that information with other public records. You can then carefully approach the family to see if they wish to sell any property. Use the list of newspapers above to read obituaries or the links below:

• Current Obituary
• Henderson Times-News
• Legacy
• North Carolina Funeral Directors Association
• The Asheville Citizen-Times
• The Fayette Observer

Local Funeral Homes

Another way to find potential probate properties is to contact local funeral homes or read their obituaries. These businesses work with families and may know more about the situation and whether the family is going to sell property. Contact some of the funeral homes below to get started.

• Alexander Funeral Services
• Apex Funeral Home
• Bryan-Lee Funeral Home
• Bright Funeral Home
• Haywood Funeral Home, Inc.
• Hickory Funeral Home
• Holloway Memorial Funeral Home
• Lowe Funeral Home and Crematory

Local Private Estate Auctions

Sometimes, after a loved one dies, the family holds a private estate sale to sell the property and belongings. You can find these auctions in the newspaper, realtors, social media, and online listings. Try the links below to get started.

• Blue Moon Estate Sales
• Elite Estate Sales
• Estate Sales in North Carolina
• Estate Sales
• Happy Camper Estate Sales

Local Realtors & Lawyers

Local realtors and lawyers may also have some insight into where to find available probate properties. They work with families, the courts, realtors, and other professionals who may have connections. Use the lists of real estate lawyers and realtors above to ask about probate properties.

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 best way to purchase distressed property. Auctions are an excellent tool for selling distressed property and getting the highest bid. Government offices, realtors, banks, and individuals use real estate auctions to get rid of property they don't want. The key to finding quality distressed property is to attend as many auctions as possible and bid on the ones you like. You can find distressed property auctions through the following sources.

Private Auction Houses

Private auction houses work with many different types of people selling distressed property. These auction houses are experts at marketing the properties, advertising auctions, managing registration, and disseminating the rules and regulations. They then hold the auction, take bids, and handle the closing, money transfer, and documentation. Some private auction houses in North Carolina to try include:

• Auction NC
• Carolina Auction House
• Carolina Auction and Realty
• Eagle Auction and Realty
• House Auction Company
• Johnson Properties
• R Giles Moss Auction & Real Estate
• Rogers Auctioneers
• Stokes Realty and Auction

State or City Resources

When tax officials or county offices seize and sell property, they post the auction notices on their websites. You can search county sites, sheriff's office websites, and other state, city, or county online platforms and look for auction notices. You can sometimes register online through the website to attend. Be sure to review the rules and regulations also. Try these below:

• Chatham County Tax Foreclosure Sales
• Cherokee County Tax Foreclosures
• City of Charlotte Public Auction
• Halifax County Tax Foreclosures
• Mecklenburg County Office of the Tax Collector
• North Carolina Department of Administration
• North Carolina Department of Revenue - Seized Property
• U.S. Department of the Treasury
• Wake County Government Foreclosures
• Wayne County Tax Foreclosures

Online Auction Platforms

You can also peruse the many online auction platforms out there. These sites usually have a realty backbone, making it easy to use built-in filters to narrow down your search for the perfect distressed property auction. These sites will list the auction date, place, and time, plus who is hosting the event. You may even find details of how to register before attending. Use the list below to get started:

• Auction.com
• Hubzu
• LandSearch
• RealtyBid
• ServiceLink Auctions
• Xome

Local Newspaper Auction Ads

Another valuable resource when looking for property auctions is the local newspaper. Many auction hosts advertise them in the paper's classifieds, real estate, or public notices section. Use the list of North Carolina newspapers above to get started, and check online for additional ads.

Real Estate Agents

Auction houses often collaborate with real estate agents to promote upcoming auctions. Contact local agents you know to learn their tips on finding property auctions and off-market properties that might be up for sale soon.

Distressed properties are sold mainly to pay off a debt or recoup financial losses. Another reason is that the owner doesn't want to deal with the necessary upgrades and maintenance. Some people want to sell quickly and will take less if they are going through a divorce or need to move. If the house has liens or legal issues, the owner may let it go for a discount just to avoid the hassle of dealing with all of it.

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 term "distressed property" is misleading, but many people may shy away from buying them due to their bad reputation. However, for some people, distressed properties look like a good deal, a better price, and an opportunity worth taking a chance on. In North Carolina, those who most often buy distressed properties are as follows:

Real Estate Investors

Real estate investors buy distressed property more than anyone else due to the low price point and opportunity for rental income or a quick flip and profit. These firms buy up multiple properties and sell them either at auction or privately. They may still discount them below fair market value when selling. Use the list of real estate investors above to see if they have any properties worth pursuing.

First Time Homebuyers

Roughly 24% of all homebuyers in North Carolina are first-time homebuyers. These first-time homebuyers generally finance 74% of the home price, meaning they have to be savvy buyers to make their dollars stretch. First-time homebuyers buy distressed property to get into better neighborhoods and larger homes for less. Even if they have to fix up a few things, it is worth it.

Nonprofits

North Carolina has over 59,000 nonprofit organizations. These companies try to do good in the world and help other people. Based on the model of a nonprofit, they work off slim budgets that don't allow for a lot of excess. Nonprofits seek out distressed property to save money by investing in space for operations or those that they serve.

Developers

Land developers also buy distressed properties. Sometimes, they buy up whole neighborhoods to improve. They may purchase property to use the land or buildings to use as rental properties. Some land developers in North Carolina are:

• Adventure Development
• Fuller Land Development
• Lipscomb Development
• Piedmont Land Development
• Premier Land
• The Keith Corporation

Wholesale Companies

Wholesale companies also buy distressed property. They contact owners in financial trouble and offer them cash for their homes. As a bonus, they don't require that the homeowner do anything; no repairs, no upgrades, nothing. Someone in dire financial straits may jump at the chance to get out of debt quickly. Some North Carolina wholesale companies include:

• Ark7
• BiggerPockets
• House Cashin
• New Western
• NC Wholesales
• Real Estate Bees
• Sell My House Fast