How to Find Distressed Properties in Massachusetts

Distressed properties are those in financial trouble, at risk of foreclosure, or already being sold at auction. They typically sell for far less than fair market value. Some are in physical disrepair, but many are in perfect shape and end up in trouble due to the owner's legal or financial issues. If a homeowner cannot pay their mortgage or taxes, they can lose the house through foreclosure.

Massachusetts has a lower foreclosure rate than the national average, with only 0.11% of housing units in foreclosure. The state ranks 17th nationally for foreclosures.

You have some great options when searching for foreclosure and pre-foreclosure sales in Massachusetts. Explore the options below to find what you need.

How to Search for Distressed and Bank-Owned Properties

• Visit the online realty search portal of your choice.
• Narrow your search by entering "Massachusetts" or the zip code of the region you desire.
• You can also narrow down your search by type of home, location, and price.
• Set up an alert to be notified when new foreclosure properties come onto the market.
• Contact the seller about making an offer.

Another way to identify potentially distressed properties is to find those with a lien. Some ways you can accomplish this include:

Search County Registry of Deeds

Every county in Massachusetts has a registry of deeds office. These offices are repositories for public records, including liens (tax liens, mechanic's liens, mortgage liens, etc.). New liens may be recorded at these offices, making them a good, updated resource for records.

You can also visit the county registry of deeds website. Many counties keep their records online, making them easier to search. You can search by property address, owner name, or parcel number to find property liens. The tool used by many of the county registry of deeds offices allows you to search by grantor or grantee name, document type, town, and date. The results show detailed records.

The Secretary of the Commonwealth of Massachusetts has a list of all registry of deeds offices.

Some examples of Massachusetts registries include:

• Suffolk County Registry of Deeds
• Middlesex County Deeds
• Nantucket County Register of Deeds
• Plymouth County Registry
• Southern Essex District Register of Deeds
• Worcester County Registry of Deeds

Municipal Tax Collector's Office

A tax lien is one of the most serious types of liens that results when a homeowner fails to pay their property taxes. These are recorded with the local tax collector or assessor's office. You can visit your local city or town hall, speak with the tax assessor or collector, and ask for a list of distressed properties with tax liens. The property must reside in the town or city where you request records.

You can also view a list of tax-delinquent properties by visiting Mass.gov. However, this list only shows properties with a tax liability of $25,000 or more.

Massachusetts Land Records Online

The Secretary of the Commonwealth of Massachusetts has an online portal for searching land records. The system includes many counties throughout the state, and you can search using name, address, or document type (e.g., lien).

Judicial Records

Some liens result from court judgments and are documented through the court system. Any lien filed with the Massachusetts courts will appear during a search. You can check public court records by accessing the Massachusetts Trial Court Electronic Case Access System. Using the system, you can look up specific cases and accompanying documents.

• Choose "Search Public Records" at the bottom to use this resource.
• Using the drop-down, choose "Land Court Department."
• You can enter a wide variety of search criteria, including the person's name, case type, case number, and ticket, and use additional search boxes to narrow down the type of document and party involved. You can also use date ranges to find what you need.

Use a Title Company or Real Estate Attorney

Title companies handle real estate deals and closing and are privy to vast information. They also conduct title searches, looking for liens before closing. You can work with a title company or real estate attorney to find properties with liens that may be moving toward foreclosure. You may have to pay for the service of a detailed lien search.

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.

Searching for bankruptcies is another way to find distressed properties that could be a great investment opportunity. In Massachusetts, there are many ways to find properties with liens in bankruptcy. They are as follows:

Search Federal Bankruptcy Court Records

First, you can visit the federal bankruptcy court in Boston, Worcester, or Springfield, Mass. The court is open from 8:30 a.m. to 5 p.m. Monday through Friday, and Bankruptcy records are public. You can ask to view recent filings.

Access PACER (Public Access to Court Electronic Records)

Another way to access Massachusetts bankruptcy records is using the online PACER system. The steps to use the system are as follows:

• Visit pacer.uscourts.gov.
• Register for a PACER account.
• Search for bankruptcy cases in Massachusetts (choose U.S. Bankruptcy Court for the District of Massachusetts).
• Identify recent properties related to bankruptcy filings and review the documents.
• Contact the property owner and make an offer.

You may have to pay fees to use the PACER system or download specific documents.

Utilize County Registry of Deeds

If you want to find foreclosures before anyone else, you can search for recently recorded liens and foreclosure notices using the county registry of deeds.

How to Search for Recorded Liens and Notices

• Visit the registry of deeds website or the office in person for the county where the property is located.
• If using the website, search by owner name, property address, or parcel number.
• Look for liens, mortgages, and foreclosure notices.
• Contact property owners to make an offer or discuss foreclosure mitigation.

Some county registry of deeds websites Include:

• Barnstable County Registry of Deeds
• Essex North Registry of Deeds
• Hampshire Registry of Deeds
• Middlesex North Registry of Deeds
• Plymouth County Registry of Deeds
• Suffolk Registry of Deeds
• Worcester Northern Registry of Deeds

Check Massachusetts Land Records Online

Massachusetts has 21 districts, each with its own registry of deeds. All land records filed with the registries get added to the Mass Land Records website. Older records remain on microfilm and paper documents, and you can access them in person at the registry of deeds location in the county where the property resides.

To Access the Statewide Land Records Portal

• Visit the Massachusetts Land Records website.
• Use the drop-down to select the county/district you need. Alternatively, you can click the interactive map to select the region.
• Download the instructions (PDF file) if necessary.
• Click the "Advanced" button at the top to open the larger search box.
• Type in the owner's name (grantor/grantee) and select document type, town, and recorded date to narrow your search.
• Review the results and look for liens or notices of foreclosure or sale.
• Contact the property owner to discuss the sale of the property.

Attend Public Auctions and Sheriff's Sales

In Massachusetts, foreclosure auctions are sometimes conducted by the sheriff's office. Other times, the county or city may conduct them or hire a local auctioneer. Monitoring sheriff's sales or public auctions is one of the best ways to find distressed properties due to bankruptcy.

How to Find Distressed Properties Through Sheriff's Office Locations:

Check county sheriff's office websites and look for any notices of foreclosure auctions. They may be listed on the county calendar or property listings. Use the search tools included on the website. You can check this list of Massachusetts sheriff's offices to find the one you need and contact them about upcoming auctions.

You can locate each Massachusetts sheriff's office by visiting the Mass.gov resource page for Massachusetts Sheriffs' Association Locations. You will see the link to each office's website in the details.

How to Find Information on Upcoming Property Auctions

Many counties use reputable auction companies to advertise and run the actual auction. These auction houses may take attendee registration and field bids and prepare the paperwork for the winner. Some examples of Massachusetts auctioneers used for this include:

• Auction.com
• JJ Kane Auctioneers
• Patriot Auctioneers
• Sullivan and Sullivan Auctioneers
• Skypoint Auctions

Steps for Buying Bankruptcy Homes in Massachusetts

• Register for any auctions you are interested in attending.
• Read all the rules and have adequate cash available on the auction day.
• Attend the auction.
• Make a bid.
• If you win, sign the paperwork and take possession of the house.

Consult Real Estate Agents and Brokers

Some realty firms and agents specialize in distressed properties as they can be a great investment opportunity. Find Massachusetts realty professionals who know the market well. Some top options available to you are:

• Coldwell Banker Realty Boston, MA
• Campion and Company Boston, MA
• Keller Williams Braintree, MA
• Coldwell Banker Realty Wellesley, MA
• Lamacchia Realty Woburn, MA
• Coldwell Banker Realty Groton, MA

How to Engage Professionals Specializing in Distressed Properties

• Find reputable Massachusetts insurance agents with bankruptcy and lien property sales expertise.
• Ask them to search the Multiple Listing Service (MLS) for distressed properties or those just coming on the market. These agents may have inside information about newly distressed properties not for sale yet to give you a leg up.
• Contact the seller and make an offer.

Contact the Massachusetts Department of Revenue

The Massachusetts Department of Revenue is responsible for state taxes and other tax-related matters. They assist cities and towns with financial matters, including property taxes. They may have listings of Massachusetts residents with tax liens who may be leaning toward foreclosure.

How to Inquire About Tax Lien Sales

• Visit the Massachusetts Department of Revenue website.
• Gather information about contacting them via social media, email, phone, or in person.
• Ask for a listing of Massachusetts property owners with unpaid taxes subject to liens or foreclosure listings that are up for auction. You may also get a list of properties scheduled for tax lien auctions.
• Contact the owner to discuss a sale.

Investigate Bank and Lender REO Listings

Local banks take possession of homes that are in default. These properties become real estate owned, and the lender typically wants to get rid of them as soon as possible to get their money back. You can search for REO listings online or contact the banks themselves for a listing of any property they want to liquidate.

Some Banks in Massachusetts to Check out Include:

• Bank of America
• Citizens Bank
• CIT Bank
• Webster Bank
• Rockland Trust
• Ally Bank
• Wells Fargo

How to Find Real Estate Owned (REO) Properties

• Visit the bank website and look for REO departments or links pertaining to real estate.
• Contact the bank representative for that department and ask for a listing of REO properties that the bank wants to sell.
• You may find a gem in the mix.
• Make an offer.

Hire a Title Company or Real Estate Attorney

Along with real estate professionals, title companies and real estate attorneys also have exclusive information about the distressed properties market. These professionals research properties deeply and will know of any with liens, outstanding tax debts, or bankruptcy. If you want help finding properties without doing the legwork yourself, these professionals can help.

Some reputable title companies and real estate attorneys include:

• Leo Cushing - Cushing & Doland, P.C.
• Sonja Selami - Law Offices of Sonja Selami
• Jonas A. Jacobson - The Law Offices of Jonas A. Jacobson
• New England Title & Escrow
• Stewart Title
• Silveri & Wilson LLC

How to Get Professional Assistance for Comprehensive Searches

• Find a reputable, experienced Massachusetts title company or real estate lawyer.
• Ask them to perform a detailed lien search for encumbrances and other issues.
• Ask if they know of any properties in pre-foreclosure where the owner may be motivated to sell.
• Hire them to help with paperwork and negotiating the deal.
• Review all the details before signing and closing.

Short sales can provide an alternative to foreclosure and help the property owner avoid a sticky financial situation. Typically, the lender arranges short sales to assist the owner in selling the house quickly, below market value (usually for the full loan amount). The lender gets paid off, and the owner escapes under an unaffordable mortgage. Banks and financial institutions may use realtors to advertise these properties in newspapers, online, and through realty websites like Redfin, Zillow, Realtor.com, and others.

You can contact large, reputable mortgage companies or banks in Massachusetts and ask if they have any properties available for a short sale or in pre-foreclosure, get a jump on the competition, and make the owner an offer.

You may also try using the federal resource HUDHomesUSA and performing a search for any short-sale homes in Massachusetts.

Properties in probate may also be an excellent investment opportunity. The trick is finding them. In Massachusetts, you can contact the county's local probate court and ask for a listing of all probate properties available for sale. Find out who the executor is, and if they are willing to sell, you can submit a bid for it, but you may have competition. The executor may also hire a realty company to handle the sale for them.

Read the Obituaries

Read Massachusetts newspapers and pay particular attention to the obituary section. Then, cross-reference the deceased with liens, probate records, and foreclosure notices. If you find a property that appears to be heading to probate, find out who the executor is and make an offer. Some to check out include:

• Boston Globe
• Boston Herald
• Eagle Tribune
• Patriot Ledger
• Community Advocate

Tax Assessor's Website

Search the local Massachusetts tax assessor's websitefor unpaid taxes and liens online. If someone dies without a family, unpaid taxes are a good indicator that the house is in probate and waiting for disposition. You can then contact the appropriate court and address the matter with the person responsible for the estate.

The key to a solid real estate investment is finding the right auction, having the available funds, and making the winning bid. The first step is to find auctions in Massachusetts and attend them. You can use several methods to do this, including:

Auction Companies

These companies specialize in conducting real estate auctions for banks, local governments, and others looking to sell distressed property. Some reputable firms include:

• McLaughlin & Co. LLC - Operates in Massachusetts, offering comprehensive auction services for many different types of properties.
• Massachusetts Real Estate Auction Schedule
• JJ Manning Auctioneers - This firm auctions luxury homes and commercial distressed properties.
• Auction Calendar – JJManning Auctioneers
• Commonwealth Auction Associates, Inc . - Operates in Massachusetts, New Hampshire, and Rhode Island, offering rlial estate auction services,
• MA Auction Schedule
• Sullivan & Sullivan Auctioneers - Auctioneers focused on residential, commercial, and industrial real estate alictions.
• Mass Auction Schedule
• Patriot Auctioneers, LLC - Servicing Massachusetts, Rhode Island, and New Hampshire.
• Massachusetts Foreclosure Auctions
• Bay State Auction - North Chelmsford, Massachusetts auctioneers holding foreclosure auctions throughout the state.
• Baystate Auction

Owners of distressed properties sell to solve a problem. The main issue is usually a financial debt such as unpaid mortgage payments or taxes. Other reasons include avoiding foreclosure, being motivated to sell and get out from under a high mortgage, avoiding making costly repairs, and selling before the house loses value. The primary goal is to recover unpaid funds.

Investors often seek distressed properties to pick up a gem cheaply and turn a profit. However, there are also some risks associated with distressed properties which include:

• Expensive Repairs (Required Maintenance)
• Legal Complications (Title Issues)
• Liens Which Must be Paid Off Before the Sale
• Complex Negotiations
• Extensive Paperwork
• Dealing with Tenants
• Buy-Back Period
• Ethical Concerns (Taking Advantage of Someone's Misfortune)
• Longer Wait Times to Close

Although some home buyers may shy away from distressed properties, these homes can offer an excellent opportunity to buy at less than fair market value. Typically, those looking to purchase distressed properties include:

• Real Estate Investors: Savvy real estate investors seek out distressed properties in good condition to buy at a discount and sell for profit. They also buy distressed properties cheaply and use them for rental income. They seek out distressed properties because they are generally cheaper, with less competition and the potential for a higher profit margin.
• First-Time Homebuyers: It can be challenging for first-time homebuyers to find the house of their dreams at a price they can afford. Browsing distressed properties allows them to enter the housing market at a lower cost. However, they must be careful to avoid purchasing a dilapidated house that requires extensive work to make it livable.
• Cash Buyers: Cash buyers have more flexibility when purchasing real estate. They don't need to wait for financing or closing schedules. They can negotiate cheaper deals on distressed properties, pay off any liens, and immediately use the house for their needs.
• Nonprofits or Developers: Nonprofits may not have the funds to purchase expensive real estate, so they may look to distressed properties for a solution. Developers may also buy distressed properties to revamp neighborhoods or create affordable housing. They have the resources to renovate and modernize outdated structures or those needing maintenance.