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How to Find Distressed Properties in Michigan

How to Find Distressed Properties in Michigan

Distressed properties are those that are sold well below fair market value due to the owner's financial situation. Typically, they are in foreclosure or pre-foreclosure due to overdue mortgage, taxes, or creditor payments. For investors, distressed properties can mean a quick profit. The key is knowing where to look for them and being the highest bidder at auction or the first one to make an offer. Public property records can help you find these distressed properties. Most counties have offices that handle recording public records like foreclosures and liens. You can also use public and commercial sources to find distressed properties in Michigan.

How to Find Foreclosure and Pre-Foreclosure Sales in Michigan

How to Find Foreclosure and Pre-Foreclosure Sales in Michigan

A large percentage of distressed property is sold in foreclosure or the stages of pre-foreclosure. These properties are often distressed because the owner cannot pay their mortgage or taxes. It's an ideal time to find foreclosure and pre-foreclosure properties to buy, flip, or rent out. Before you can invest, you need solid resources to find these properties. Use the sources below to find foreclosure and pre-foreclosure sales in Michigan.

County and Municipal Resources

When searching for foreclosure properties or those heading towards foreclosure, your first stop should be county and municipal resources. These offices are the official recorders for property records like tax liens, foreclosures, and mortgages. You can pull records of recently filed liens or check the websites for auction sale notices. Use the county resources below to get started.

County Register of Deeds Office

In Michigan, many property records are filed with the register of deeds office. You can search these websites for property records, liens, and other information or visit the offices in person. If you go there, you must pay a fee for each copy you request. Try these counties first:

County Treasurer's Office

Michigan's county treasurers handle tax liens and are the place to go for a list of recently filed liens. You can use the county treasurer's website to search for records or visit the office in person. Check out these offices below, or try your own search.

State of Michigan Department of the Treasury

The State of Michigan Department of the Treasury is the government office responsible for all county tax offices. They oversee property tax assessments, rates, and other issues. They also get copies of all tax liens filed within the state. You can contact this office to get a copy of recently filed tax liens or ask about any upcoming tax foreclosure auctions.

Sheriff's Department

Some counties allow the sheriff's department to handle tax foreclosure auctions when the county imposes liens and seizes property for unpaid taxes. You can check out these sheriff's department websites to find auction sales or visit the department in person and ask the clerk to provide you with information.

Public Sources for Foreclosures

Along with the many county and city resources available for finding foreclosure properties, you also have many public and commercial sources. Try a few of the ones listed below to find properties that appeal to you.

Law Firms

Some law firms specialize in different areas of the law. Many focus on real estate and work with distressed properties exclusively, making them experts and a great resource to tap. These professionals have their finger on the pulse of the distressed market in Michigan and would know how to point you in the right direction. They might even be able to connect you with off-market property owners looking to sell. Some to try include:

Legal Notices in Newspapers

In Michigan, people who foreclose on property must post a legal notice in the county newspaper four consecutive weeks before the auction. The notice must also be posted at the property at least 15 days after the first notice. You can scour local newspapers like the ones below to find foreclosure notices and auction ads. Check local newspapers' classifieds, real estate, and legal notices sections.

Real Estate Investors

Real estate investors particularly look for foreclosure properties to buy and sell again for a profit. These firms may purchase properties in bulk from entire neighborhoods or single-family homes. Commercial buildings are also a sound investment if you can fix them up and rent them out. Some real estate investors in Michigan include:

Public Auctions

Most foreclosed property is sold at auction. These auctions are held at various different places (sheriff's offices, courthouses, government offices, private auction houses, etc.). Check the list of auction sources farther down this page and contact them to ask about any upcoming auctions in your area. These places will have first-hand knowledge of good-quality properties you could get for a steal.

Online Real Estate Platforms

The internet is full of helpful real estate platforms, many free, where you can find foreclosure and pre-foreclosure homes. You may even stumble upon short sales and auction properties. Some online realty platforms to check out are:

  • Zillow Zillow: Zillow offers complete listings of foreclosure and pre-foreclosure homes, auctions, and bank-owned properties.
  • Equator.com Equator.com is a professional realty website where you can search for foreclosure sales.
  • Redfin Redfin: Another up-and-coming real estate platform where you can search for state-local foreclosure properties and make an offer through the website.
  • Foreclosure.com Foreclosure.com: Foreclosure is a website dedicated to listing properties by state.
  • Realtor.com Realtor.com: Realtor is another realty website that sorts houses by foreclosure. You can easily see all available foreclosure homes and narrow your search by price or location. Under "Homes for Sale", choose Foreclosures to see all the listings. The site offers the option to schedule a tour, contact the listing agent, or make an offer.
  • MLS MLS: The MLS is the standard listing database for all real estate properties in America.
  • RealtyTrac REO RealtyTrac REO: A subscription-based platform that allows you to track foreclosure homes and REO listings.
  • Auction.com Others: Some additional platforms to try are HUD Homes, Bank of America Real Estate Center, HomePath by Fannie Mae, and Auction.com.

How to Locate Properties in Michigan That Have a Lien

How to Locate Properties in Michigan That Have a Lien

Liens often lead to foreclosure. Although most homes have mortgage liens, other types like mechanic's, judgment, and tax liens indicate a serious financial problem. Finding lien properties is another avenue for breaking into the distressed property market. Use the resources below to find lien properties and combine that information with other public records to learn who to contact to make an offer.

Michigan Department of Treasury

When property owners fail to pay their property taxes, the county can place a lien on the property. After some time, the county can foreclose and sell the property at auction. The Michigan Department of Treasury oversees all local tax officials and is notified of tax liens imposed within the state. Contact the Michigan Department of Treasury and ask for a listing of the latest tax liens or when the foreclosure auctions occur.

County Register of Deeds

Each county register of deed office is the repository for deeds, mortgages, liens, and other vital and property records. You can visit these offices in person or search on their websites for recently filed liens. Some to start you off include:

Michigan Courts

Judgement and mechanic's liens are filed through the courts in Michigan. You can search for case records by name, case type, and other criteria on the One Court of Justice website. If you visit the court in person, you can ask the court clerk for help finding the records you need.

Use a Title Company or Real Estate Attorney

Title companies and real estate attorneys handle real estate sales. They handle all the paperwork and legal aspects. Before the closing, they perform a deep title search looking for any title defects, encumbrances like liens, foreclosures, or other legal issues that could affect the sale. These professionals can help you find lien properties using the resources they have at their disposal. Use the list of Michigan title companies and real estate attorneys to get started.

Michigan Title Companies

Michigan Real Estate Attorneys

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.

How to Find Bankruptcy & Lien Property Sales in Michigan

How to Find Bankruptcy & Lien Property Sales in Michigan

Some people who get in over their heads choose bankruptcy to help sort out their financial troubles. Bankruptcy is handled through the courts, and a judge will review the person's assets and liabilities and then decide the best course of action to pay off all the debts. Sometimes, the courts make the homeowner sell property to free up cash to pay off debts. Bankruptcy and lien property sales are another great way to invest in distressed property. Use the resources below to find these unique opportunities.

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 Michigan 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 Michigan

Bankruptcy courts in Michigan have records that they provide to the public. You can search the website or visit and ask for records in person. Michigan bankruptcy courts are divided into districts. Use the links below to get started:

County Websites

Lien property sales are often advertised on county websites. Sometimes, the local county sheriff's office holds auctions, so you can also find mention of them there. Other county websites also list the date, time, and place of auctions and even offer an online registration option. Some county websites that list lien property auctions include:

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

By law, anyone who forecloses on a house in Michigan must post a notice in the newspaper for a month before selling. These notices may appear in your favorite newspapers' legal, real estate, or classified sections. Check local papers using the list above to find lien properties in Michigan. Some additional links to try are:

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

A surefire way to find lien properties to suit your needs is to attend public auctions and sheriff's sales. Those holding the auction advertise these on county websites, newspapers, and social media. Use the list above of sheriff's offices and sheriff's sales to get started.

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

Social media is an effective way to spread the word about lien properties or auctions. Many distressed real estate players in Michigan use social media to advertise upcoming auctions and post lien notices. For example, a Facebook group called Foreclosure Investors might be helpful.

Consult Real Estate Agents and Brokers

Real estate agents and brokers know plenty about the local market and can be a valuable asset when looking for lien properties. They might not only know off-market opportunities but also get to know people and can create connections for you with people experiencing financial difficulties who are willing to sell for less. Contact a few local agents using the list below to see if you can cultivate a relationship and help each other out.

Specialty Websites - Distressed Properties

Another interesting way to find tax line properties is to use specialty websites. These sites have built-in filters and tools to narrow down your search. Try the ones below or search for others in the local Michigan Area.

Hire a Real Estate Attorney

Real estate attorneys are also good resources for finding lien properties. These legal professionals know a lot about the industry and have many connections from which you can benefit. They might know business associates with off-market properties or families looking to sell property quickly. Use the list above of real estate attorneys and find one to help you.

How to Find Short Sales in Michigan

How to Find Short Sales in Michigan

When homeowners are in financial trouble and can't pay their mortgage, the lender will start pre-foreclosure, which means they will send a notice of intent to foreclose. The property owner may be desperate to avoid foreclosure and jump at the chance of a short sale. A short sale is where the lender helps the homeowner sell their house for the outstanding balance on the loan plus interest and fees. The bank will pay for advertising, working with a realtor, and even cover closing fees to get the property sold so they get their money back. Some ways to find short sales in Michigan include:

Check Out Bank and Lender REO Listings

Contacting local banks is the best way to find short sales. If the bank has already foreclosed and tried to sell the property at auction but they were the highest bidder, they own it. They may try to sell the property privately, through a realty firm, or in another auction. You should contact local banks and mortgage companies and ask to speak with an agent in their REO (real estate owned) or real estate department about any available properties. Use the list of Michigan banks to get started.

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

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.

How to Buy Probate Properties in Michigan

How to Buy Probate Properties in Michigan

When someone dies in Michigan, their estate must go through the probate process. A court will review the deceased's will and appoint an executor to ensure the person's assets are distributed according to their wishes. If the deceased person has debts, the court or family may choose to sell off the property to pay them off. Typically, probate properties sell below market value, making them a deal. You can find probate properties in a few different ways. Use the resources below.

Michigan County Probate Courts

In Michigan, probate is handled by the county probate court. Each county has its own courthouse and website. You can either visit in person and request probate records or use the search feature on their website to find records. Probate records are public and easy enough to find if you use the correct court. Try some of the links below to find the proper probate court.

Local Obituaries

Local obituaries are another way to find probate properties. You can locate the person's family, look up additional details from other public records, and then contact them to see if they are willing to sell. Check the local obituaries in your daily newspaper or use the links below:

Also, check local funeral home websites like these below for obituaries.

Local Funeral Homes

Local funeral homes can be helpful. They work with families to hold services, including burial and cremation. They may also know of families willing to sell property after someone they love dies. Contact these funeral homes for inside information and tips on finding probate properties. Use the links below to start.

Local Private Estate Auctions

After someone dies, a family may choose to hold an estate auction selling the property and all the person's assets. Depending on the situation, these auctions may be held by an auction house or the courts. Use some of the links below to find estate auctions and potential probate properties.

Local Realtors & Lawyers

Both realtors and lawyers work with grieving families to settle the estate of loved ones. You can use the lists of Michigan real estate attorneys and realtors above to find potential probate properties just waiting to be scooped up. Create relationships with these professionals so that they call you first when a new ideal situation 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.

How to Find Real Estate Auctions in Michigan

How to Find Real Estate Auctions in Michigan

Real estate auctions are your best bet for finding distressed properties in Michigan. You can use various sources to find these auctions. Many online options allow you to register right there. You can usually find the rules and regulations also. Use the resources below to start.

Private Auction Houses

Lenders, government agencies, and private citizens use auction houses to sell property. These auction houses handle everything from advertising and marketing to collecting registrations, holding the auction, collecting fees, and documentation and closings. Try some of these auction houses in Michigan.

State or City Resources

Many Michigan counties advertise real estate auctions on Tax-Sale.info and their websites. Use the links below to check them out and register to attend.

Online Auction Platforms

Online auction platforms are another great resource. These websites have powerful search features and filters, so you can really find what you need easily. Some online auction platforms to try are:

Local Newspaper Auction Ads

As mentioned, many people advertise Michigan real estate auctions in the newspaper. You can find them in the real estate section, classified ads, or notices section. Check out the list of Michigan newspapers above to get started. Also, check online news outlets.

Real Estate Agents

Many auctioneers advertise their properties through a realty company. Contact some local real estate agents to see if they know of any upcoming distressed property auctions. Also, check their websites; they list auction properties there as well.

Common Types of Distressed Properties

Properties become distressed for different reasons, resulting in various types. Some of the most common types you will find in Michigan include:

  • Foreclosures: Most distressed property comes from foreclosure when the owner cannot pay their taxes, mortgage, or creditors. Michigan is ranked 13th in the U.S. regarding foreclosures, with a rate of one in every 3,918 housing units.
  • Short Sales: Some property owners choose to sell their house in a short sale rather than lose it to foreclosure. In Michigan, short sales sometimes sell for 90% less than fair market value, which is a steal.
  • Bank-Owned: In 2023, Michigan had 3,634 bank-owned properties (REOs), making Michigan a fertile bank-owned market. When a bank forecloses and seizes property, it becomes bank-owned and sells for less.
  • Motivated Sellers: People desperate to move quickly often sell their property for less than fair market value.
  • Estate Sales/Probate: When someone dies, the courts or family often sell property cheaply to pay off the deceased's debts.
  • Divorce Properties: Divorcing couples often sell their property for less because they want to dispose of their marital assets as quickly as possible.
  • Tax Delinquent: Many properties are sold due to overdue property taxes. The county takes the house and sells it at auction.
  • Abandoned Homes: Some homes are abandoned for many reasons. The town, city, county, or state will take possession of and sell them. These homes are usually in poor shape due to neglect or vandalism.

Some of the reasons these properties become distressed include:

  • Financial Issues: Financial troubles are the number one reason homes become distressed. Money issues usually lead to liens and then foreclosure.
  • Physical Deterioration: Homes require regular maintenance and upgrades, and sometimes, this becomes too much for the owner to keep up with, and the property becomes run down and needs fixing.
  • Legal Challenges: Another reason houses become distressed is legal issues like title issues (legal claims on the property), liens, or lawsuits.

Why Are Distressed Properties Sold?

Most people sell distressed properties to recoup some financial loss. This includes lenders, homeowners, tax officials, or creditors. Someone needs to get paid. Sometimes, distressed property is sold to pay off debts, such as those in probate. Divorced couples and those desperately needing to get out from under a big mortgage may sell property for less. Some homeowners want to avoid fixing up the place or making necessary updates. Others might be trying to avoid foreclosure or resolve other legal issues.

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

Who Buys Distressed Properties?

Many different types of people buy distressed properties because they can be a great deal if they are in good condition and priced low. Most normal buyers won't bother with the complexities that come with distressed property, but others will jump at it. In Michigan, the most common types of people who buy distressed property include:

Real Estate Investors

Real estate investors are the most common type of buyers of distressed property. They see the value in buying cheaper homes that might need a tiny bit of fix-up to then sell for fair market value and make a profit. These savvy investors seek out good-condition properties among the sea of dilapidated ones. Check out these real estate investors in Michigan and see if they know of any properties that might be a good fit for you.

First Time Homebuyers

Roughly 24% of the Michigan home-buying audience is first-time buyers. Their typical income is $97,000, and their average age is 38. These buyers are looking for high-quality homes in good neighborhoods but don't want to pay full price. Distressed properties offer an option to buy low, fix it up, and sell it high later.

Nonprofits

Nonprofits tend to pick a cause and work to improve people's lives. In Michigan, there are 53,012 nonprofit organizations. Each operates on a limited budget, so when they need buildings for operations or those they serve, they turn to distressed property to save money.

Developers

Real estate developers buy distressed properties for many reasons. Some buy them to use the land. Others purchase commercial buildings to upgrade and rent out to low-income families, vets, or people with disabilities. Still, others may buy distressed property to flip and turn a profit or use it as rental units for ongoing income.

Wholesale Companies

Wholesale realty companies offer financially strapped property owners cash for their homes. They make it easy; the owner doesn't have to do a thing. They don't need to worry about upgrades or even fixing what is wrong with the house. These organizations then fix them up, turn around, and sell them on the open market. Some Michigan wholesale companies include:

The Process of Purchasing Distressed Properties in Michigan

Michigan has a high number of vacant homes (631,361) and a large number of foreclosures (12,490). One in every 3,918 homes becomes distressed. That means if you are interested in buying one, you have an abundant opportunity to do so. The process of purchasing a Michigan distressed home is as follows:

  • Find Distressed Properties: The trick is finding the right property for you. You can check public records for newly filed foreclosures or tax liens. Monitor bank or public real estate auctions to find available homes. Check local municipal websites for notices of upcoming foreclosure auctions.
  • Secure Your Financing: Work with your bank or lender to secure the proper financing. Often, you must pay cash for the property and take immediate delivery.
  • Hire a Real Estate Professional: Consider hiring a real estate agent specializing in distressed properties. These can be more complex to negotiate and buy.
  • Attend Auctions: Attend foreclosure auctions and bid if you have the available funds.
  • Inspect the Property: If possible, tour the property and have it inspected and appraised so you can prepare for the sale, knowing everything you can about it.
  • Review Property Records: Research the property and its owners using public property records to look for red flags.
  • Make an Offer/Negotiate the Deal: Make an offer, bid, or negotiate the deal and take care of your side of things.
  • Pay and Close: Close on the house and pay the amount due, sign the paperwork, and take possession.

Things to Consider When Buying Distressed Properties

Distressed properties can be a great investment, but they often come with challenges you may not be aware of. Always be very careful when purchasing distressed real estate.

  • Thorough Inspection: Have the home thoroughly inspected by a qualified company. Look for any serious structural damage that could be costly to repair.
  • Background Check: Conduct a background check on the owner and property, looking for any red flags, such as lawsuits, liens, title issues, unpaid property taxes, etc., that might complicate the sale.
  • Budgeting: When buying a distressed property, remember to budget for closing costs, inspection, appraisal, and any necessary maintenance.
  • Research the Local Area: Research the local area and property values thoroughly. Some areas are in a decline, and you may end up owning something that decreases in value rather than increases.
  • Work with Professionals: Work with an experienced Michigan professional who has helped others find and purchase distressed properties.

Instant Access to Michigan Property Records

Table of Contents

Instant Access to Michigan Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to Michigan Property Records

Table of Contents

Michigan Property Resources