How to Find Distressed Properties in New Jersey

Distressed properties can be an excellent investment if appropriately purchased. Although some are in rough shape, many are in excellent condition and are only being sold at a discount due to the owner's financial troubles. New Jersey is close to New York City and an ideal location for many who cannot afford the city, making distressed property very appealing. The trick is knowing where to find these properties so you can get in before anyone else. The key is public property records, which you can find from both government and private sources. Some places you can look are county websites, sheriff's offices, state departments, law firms, realtors, newspapers, public auctions, and online platforms. Use the resource details below to find distressed properties in New Jersey.

Since most distressed property becomes so through foreclosure, this is the first place to look. Pre-foreclosure is the period before the auction when the homeowner still has a way to climb out of debt. It is also an optimal time to make an offer that the property owner may jump at. Once it gets to the foreclosure auction, you must attend and bid like everyone else. Some ways to find foreclosure and pre-foreclosure properties include:

Liens can lead to foreclosure and the loss of a home. Most people have mortgage liens, but it spells trouble when someone has multiple liens (HELOC, tax, mechanic's, and judgment) on their house. The owner may be suffering financial difficulties and need a quick fix. These owners are often ripe for selling. Finding liens is like pulling a thread. You can consult public records to learn more about the owner and the situation and possibly contact them to make an offer. Some ways to find lien properties include:

County Recorder's Offices

You can try county recorder's offices throughout New Jersey to find lien records. They are filed with these offices, and you can request them in person from the clerk or try a search on the county recorder website. Use the links above and start with those counties. You can also try these below:

• Bergen County Land Records Search
• Burlington County Public Records Search System (PRESS)
• Mercer County Land Records
• Middlesex County Land Records Search
• Morris County Online Property Record Search
• Passaic County Land Records
• Union County Public Land Records

New Jersey Courts

The New Jersey court system is the place to search for judgment and mechanic's liens. These are filed through the court, and when someone wins, a lien is placed on the property until it is sold at auction, and the creditor gets their money. You can perform a lien search on the New Jersey Courts website or visit them in person and speak to the court clerk.

New Jersey Treasury Division of Taxation

Tax liens are filed with the county tax official, but the New Jersey Treasury Division of Taxation is also notified. You can contact this government office to review a list of tax lien properties and recently filed liens. You can also try calling them or emailing them to get this information. Tax liens are public records.

Use a Title Company or Real Estate Attorney

The sale of real estate requires a lot of steps. One of those is a title search looking for any encumbrances, liens, foreclosures, title defects, or legal issues that could derail the sale. The title company or real estate attorney handling the closing will do this for you. They have access to powerful resources and can do things like this easily. Consult a New Jersey title company or real estate attorney to help you find foreclosure properties. Try these below to start.

New Jersey Title Companies

• Coastal Title Agency, Inc.
• First Jersey Title Services, Inc.
• National Title Company
• New Jersey Title and Abstract
• Sunnyside Title Company
• The Title Company of Jersey

New Jersey Real Estate Attorneys

• Law Firm of Earl P. White
• Law Offices of Michael C. Schonberger
• Law Offices of Patel and Cardenas
• Law Offices of Les R. Kramsky, LLC
• Morris County Real Estate Law
• Ray J. Barson Princeton, NJ Real Estate Lawyer

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.

Liens are legal claims on property used to secure loans or debts utilizing the property as collateral. When the property is sold, these liens/debts are paid off before the remainder goes to the seller. When a homeowner cannot pay their taxes, the county imposes a lien on the property, and if it remains unpaid, they could foreclose and sell the house at auction. Some people in financial trouble turn to bankruptcy. Often, the judge will order the homeowner to sell the property to pay off the outstanding debts. Lien and bankruptcy properties are another way to invest in distressed property. These properties typically sell for less than fair market value, making them a great deal. Some ways to find them 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 New Jersey 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 New Jersey

When filing for bankruptcy, applicants must visit the local New Jersey Bankruptcy Court. There are a few locations around New Jersey. The court has a robust website where you can search for bankruptcy records and find those with property attached. Depending on the case, you may have to contact the court or the seller to make an offer.

New Jersey Courts

If you are looking for recently filed liens to obtain property, check with the New Jersey Courts. They have a powerful search engine, and you can find public records on lien cases (judgment/mechanics) and other types of cases with property. Check online or visit the courthouse in person.

County Clerk

You can also find recently filed liens with the county clerk's office in each county location. You can visit in person and ask for paper records or use the search tool on their website. If you need paper or certified records, they will charge you a small fee. Some county clerk's offices to try are:

• Bergen County Clerk
• Cumberland County Clerk
• Essex County Clerk
• Hudson County Clerk
• Mercer County Clerk
• Monmouth County Clerk
• Ocean County Clerk
• Union County Clerk

New Jersey O.G.I.S. Property Explorer Tool

The state of New Jersey set up the New Jersey O.G.I.S. Property Explorer Tool for the public to search for information on specific properties. It's a map-based tool where you can click on a particular area and narrow it down with a search. When you click on a specific parcel, you will see many details. You can then take that and find more information to find lien properties.

City Websites

You can also peruse city websites that advertise lien tax sales and foreclosure auctions on their websites. To start with, try the list below and perform a search of your own to find lien properties.

• City of Elizabeth Tax Sale
• City of Summitt - Lien Sale Properties
• Hopewell Township Municipal Lien Properties
• Livingston Township Online Tax Sale
• Milltown Tax Sale
• Township of East Hanover Tax Sale
• Township of Nutley Tax Sale Information
• Westwood Tax Sale Notice
• Woodbury Tax Sales

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 are published in the local newspaper for a few weeks before the property is sold at auction. Check out the list above and pay close attention to the legal notices, classifieds, and real estate sections looking for any mention of a tax lien sale or foreclosure auction.

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

Public auctions and sheriff sales are a surefire way to find tax lien properties. But first, you must know where to look. Use the list of auction resources further down this page. You can also check city resources like Trenton, where they advertise public auctions on their website.

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

Social media has become the best way to get the word out about real estate. Everyone uses it, including government offices, sheriff's departments, realtors, attorneys, title companies, and private citizens. Find some of these you like and follow them to be notified when they post something new. Lien properties and foreclosure auctions will pop up there, along with information about how to purchase, where and when the auction is, and registration details. For example, a realty company set up this private Facebook group to discuss off-market distressed properties. You can apply to join.

Consult Real Estate Agents and Brokers

Realty professionals are the most informed when it comes to property. They will have inside information about lien and bankruptcy properties you can buy. Contact a few from the list below to get started.

• Betancurth Real Estate Group
• Elite Realtors of New Jersey
• Liberty Realty
• Michelle Pais Group
• NJ Real Estate eXperts
• Roman Balandan Realty
• The Robert Dekanski Team

Specialty Websites - Distressed Properties

You can also search for lien properties online and find some specialty websites and obscure resources that lead to success. Some specialty websites to try when looking for New Jersey lien properties include:

• Batchleads
• Byrnes O'Hern & Heugle Property Liens
• Ewing New Jersey Tax Sale
• Housing and Community Development Network of New Jersey
• HUDHomesUSA
• Teaneck Township Tax Sale
• Willingboro Township Tax Sale Information

Hire a Real Estate Attorney

Real estate attorneys are also knowledgeable about lien properties. They work with homeowners in financial trouble with either liens or bankruptcy issues. They may have a list of clients ready to sell off-market properties. Contact some local New Jersey real estate attorneys to inquire. Start with the list above.

When a homeowner is in hot water because they haven't paid their mortgage, the lender will try to work it out by offering to help with a short sale. A short sale is when the lender assists the owner in selling the house for the amount due on the loan, plus interest and fees. The bank will handle advertising, realtors, title companies, and closing costs to get the job done. These homes sell for far less than their actual value, making them a steal for an investor. Some ways to find short sales in New Jersey are:

Check Out Bank and Lender REO Listings

Banks themselves are your primary source for bank-owned, REO, or short sales. Banks forced to foreclose often hold an auction and can bid as high as the outstanding loan balance. If they are the highest bidder, they win and own the property. It becomes bank-owned or real estate-owned. They then must sell it privately, at another auction, or through a realtor. You can contact local banks and speak to their real estate or REO division to see if they have any upcoming shorts sales or bank-owned properties for sale. You might get lucky and nab an off-market one before anyone else. Try a few of these banks to start.

• Chase Bank
• Columbia Bank
• Credit Union of New Jersey
• Kearny Bank
• Fulton Bank
• OceanFirst Bank
• St. Mary's Bank

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

• American Federal Mortgage
• Garden State Home Loans
• Jersey Mortgage Company
• Nation One Mortgage Corporation
• New Jersey Mortgage Services
• NJ Lenders Corp

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 New Jersey, their estate must go through probate except in rare circumstances. Even if they have a will, a judge reviews everything and decides upon an executor to ensure that all the deceased's assets get distributed to the beneficiaries as intended. If there is property, the court may decide to sell it to pay off the deceased's debts. Probate properties are generally sold well below market value to get rid of them quickly. They can be a great deal. Some ways to find probate properties include:

New Jersey Judicial District Court

Probate in New Jersey is handled at the county level. Each county has its own court to handle probate cases. Contact these courts or check their website for a search feature to find probate cases that may have property available. Some county probate courts to start with include:

• Bergen Surrogate's Court
• Camden County Surrogate Court
• Essex County Surrogate's Court
• Middlesex County Surrogate's Court
• Monmouth County Surrogate Probate Courts
• Morris County Probate Court
• Passaic County Surrogate's Court

Local Obituaries

Local obituaries are also a good way to find potential probate properties. You can regularly read obituaries in the local newspaper (see the list above) or specialty websites and then marry that information with other details from public records. You can then discretely contact the family to see if they are willing to sell the property. Some obituary sources include:

• Asbury Park Press Obituaries
• Bergen Record Obituaries
• Courier-Post Obituaries
• Legacy
• New Jersey Death Index
• New Jersey Herald Obituaries
• NJ.com

Also, try some funeral home obituaries like O'Brien Funeral Home.

Local Funeral Homes

Local funeral homes work with families to handle services, burial, and cremation. They know a lot about these situations and may have inside information about off-market probate properties that you could purchase. Contact them and ask for this information. Some New Jersey Funeral Homes to try include:

• Bridgewater Funeral Home
• D'Elia Funeral Home
• John E. Day Funeral Home
• Leber Funeral Home
• Mount Laurel Home for Funerals, Inc.
• Shore Point Funeral Home
• Shook Funeral Home Inc.
• Zuasola Funeral Homes of New Jersey

Local Private Estate Auctions

After someone dies, the family will sometimes handle auctioning off the property themselves. They may use a realtor or an auction company to help advertise. You may see ads for it in the newspaper or online through social media. Keep your eyes peeled for private estate auctions. Some places to look are:

• Absolute Auctions & Realty
• Bodnar's Auction
• Fortna Auctioneers
• Max Spann Real Estate Auction Company
• Tranzon
• Warner Real Estate & Auction

Local Realtors & Lawyers

As mentioned above, realtors and lawyers both have exclusive information about specific real estate markets, and they, too, would be a great resource to contact for information about probate properties. Working with many different clients, they will have tips on hot opportunities that you can benefit from. Use the lists above for New Jersey realtors and real estate lawyers.

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.

One of your best resources is going to be New Jersey real estate auctions. Most distressed property gets offered up at these events. You can find advertisements for these real estate auctions in various places. Check out the list of possible venues for tax lien or foreclosure auctions below.

Private Auction Houses

Families, government offices, realtors, lawyers, and the courts may use auction companies to host events. These professionals advertise the auction, collect registrations, disseminate the rules and regulations, hold the event, and then handle the exchange of money and title to the property. Some private auction houses in New Jersey include:

• Caspert Auctioneers and Appraisers
• Curated Estates
• Dennis Auction and Estate Sales
• Dutch Auction Sales
• Emanon Auctions and Real Estate
• Millea Bros Auctioneers
• Nye & Company
• Willow Auction House

State or City Resources

You can find distressed property auctions on various government websites as well. Some will be at the county level, but you can also find them on city and state websites. Use the lists above of sheriff's sales and try these below to get started.

• Bergen County Sheriff Sales
• City of Trenton Public Property Auction
• County of Morris Sheriff Sale
• County of Union Sheriff Sale
• Hunterdon County Sheriff's Sale
• Mercer County Sheriff's Foreclosure Sales
• Monmouth County Foreclosure Sales List
• Ocean County Sheriff's Office Foreclosures
• U.S. Department of Treasury Seized Property Auctions

Online Auction Platforms

An often overlooked option is online platforms. You have your pick of dozens of useful online platforms that advertise auction properties. The best thing is you can browse from the comfort of your own home. These sites have filters to narrow your search to find just what you need. Give the ones below a try:

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

Local Newspaper Auction Ads

Most people running auctions also list them in the local newspaper to ensure the widest audience possible. Check your local newspaper classifieds, real estate, and public notice sections. The listing should include the property address, date, time, event location, and registration instructions. You may even find a link to the rules and regulations.

Real Estate Agents

Local real estate agents will also be informed of any upcoming auctions in the area. Call on your favorite list of realtors and ask if they know of any off-market distressed property or any coming up for sale soon. Be sure to register early and have the cash ready. Most auctions require that you pay at the time of the win and in cash.

Regardless of who is selling it, distressed property is most often sold to regain the financial losses. Lenders want to get paid back for the loan they offered. Homeowners want to escape debt and walk away with a little something. Creditors also want to get paid what they are owed. Even selling for less than market value can solve these problems. A military person or someone who takes a job far away may need to move quickly and will take less for their home. Banks, divorced couples, families in probate, and others also sell property for less than it's worth.

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

Most real estate buyers won't want to deal with the hassles of distressed property. However, some people actually seek out distressed property because of the opportunity for a quick payoff. If you find a property that has nothing wrong with it but is being sold at a discount due to the owner's financial issues, you can quickly flip it for a quick profit. Certain types of people look for distressed property to buy. The most common in New Jersey are:

Real Estate Investors

Real estate investors buy distressed property because they can see the potential. They may purchase property for the land to use it in some other way. They might buy and rent multiple properties out for an ongoing revenue stream. Some real estate investors buy property, fix it up, and sell it. Some real estate investors in New Jersey include:

• Advance Realty Investors
• Connected Investors
• JDL Ventures
• Levine Capital
• Marcus & Millichap
• South Jersey Real Estate Investors Association

First Time Homebuyers

First-time homebuyers often have limited means to buy a home. They may seek out distressed property to stretch their dollar further and get into a nicer neighborhood and a bigger house for less. In New Jersey, roughly 32% of homebuyers are first-time homebuyers.

Nonprofits

New Jersey has 41,000 nonprofit organizations. These selfless companies work hard to improve the lives of others. Doing so means working off a limited budget. When it comes time to purchase real estate, they may choose distressed property that needs a little work to save money.

Developers

Real estate developers also prefer distressed property for some projects. They may buy up entire neighborhoods to improve and house low-income families, disabled adults, or veterans. They may invest in distressed property for rental units or use the land to build something entirely new. Some land developers in New Jersey include:

• Dervo Developers LLC
• Gonsosa Development
• Ideal Development USA
• Leverage Homes
• Parkshore Development Corporation
• Russo Development LLC
• Vantage Real Estate Services

Wholesale Companies

Wholesale realty companies offer people in financial trouble cash for their homes. Someone drowning in debt may jump at the offer even though it may be pennies on the dollar. These companies then fix up the homes and sell them for a profit. They may still be well below fair market value and a good investment. Check out some of these below:

• Ark7
• Holly Nance Group
• House Cashin
• Liz Buys Houses
• NJ Direct Property Buyers
• NJ Property Wholesalers
• Real Estate Bees
• Wholesale Discord