How to Find Distressed Properties in Tennessee

Distressed properties are those that sell for less than fair market value due to specific circumstances. Usually, the owner has financial difficulties and cannot pay their mortgage, taxes, or creditors. The lienholder forecloses and sells the house at an auction. Some distressed properties are in rough shape, but others are perfectly fine, making them a sound investment. Investing in distressed property can be a great way to make money. The key is finding good-quality properties to buy before anyone else. You can search through county, municipal, and state resources and agencies to find public property records that point you in the direction of distressed property. You can also use public, commercial, and semi-private options to find records. Use the complete resource guide below to find distressed property in Tennessee.

Most distressed properties end up in foreclosure. Foreclosure is the point at which the house is sold at auction. Before that, it is called pre-foreclosure and gives the owner some time to find a solution and pay off their debts. Searching for foreclosure and pre-foreclosure homes can give you a leg up on the competition. You can find foreclosure auctions through both government and public sources. Here are a few resources to get started.

Liens are legal claims on property and they can indicate an owner's financial trouble. Although most houses have a mortgage lien, most do not have mechanics', tax, and judgment liens. Those that do are most likely ripe for sale. You can find lien properties and then use other public property records to discover more. Contact the owner to see if they might be willing to sell. These off-market properties can be a great way to find distressed property easily.

Tennessee County Tax Assessor

Each Tennessee county tax assessor has the ability to impose a lien on property for unpaid property taxes. These officials can also foreclose and sell the house at auction if the owner does not pay. Before they do this, you can get a list of tax liens and contact the owner to see if they want to sell privately. Some county tax assessors to contact for this list are:

• Blount County Assessor
• Jefferson County Property Assessor
• Knox County Property Assessor
• Madison County Assessor of Property
• Maury County Assessor
• Nashville Property Tax Assessor
• Shelby County Assessor of Property
• Sumner County Assessor of Property
• Washington County Property Assessor
• Williamson County Property Assessor

County Registry of Deeds Offices

Since many liens and mortgages plus deeds are filed with the county registry of deeds office, it's another place to look for lien properties. You can ask to see the deeds, which detail liens on them, or ask for a list of recently filed mechanics and tax liens. Use the list of registry of deeds offices above and search for others.

Tennessee Courts

Judgment liens are ordered through the Tennessee courts. You can contact local county courts to find lien records or go online and search for lien cases through the website. Some Tennessee courts to start with include:

• Carroll County Courthouse
• Franklin County Circuit Court
• Grundy County Courthouse
• Hawkins County Circuit Court
• Lincoln County Courthouse
• Macon Circuit Court
• Montgomery County Court
• Sumner County Circuit Court
• Wilson County Circuit Court

Tennessee State Library & Archives

The Tennessee State Library & Archives is another excellent resource for finding lien records and related property records. You can visit the library in person to request records or use their website to perform an online search.

Use a Title Company or Real Estate Attorney

Before the property sale, the title company or real estate attorney performs a thorough title search looking for any title defects, liens/encumbrances, and other issues that could delay the sale. Partner with title companies or real estate attorneys to help you find lien properties and off-market opportunities. Real estate attorneys help people going through financial difficulties sell their homes. Try the title companies and real estate attorneys below to get started building your network of resources.

Tennessee Title Companies

• Greater Nashville Title
• Magnolia Title & Escrow
• Mid-State Title & Escrow Inc.
• Tennessee Land Title
• Tennessee Title & Escrow Affiliates
• Tennessee Title Services
• Wagon Wheel Title

Tennessee Real Estate Attorneys

• Ashworth & Rye PLLC
• Collins Legal PLC
• Johnson, Murell & Associates
• McCann & Hubbard
• Puryear, Newman, & Morton PLLC
• Rochford Law & Real Estate Title
• Sam Cross Law
• Smith Scholar Milliken Matthews 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 people in financial trouble. Bankruptcy candidates must file through the federal courts, and a judge will appoint a manager for their case. The manager will help determine a payback schedule for all their debts. In some cases, they will order the person to sell off property to pay the debts. You can contact bankruptcy courts to find lien property sales and off-market properties. Use the resources below to find lien property sales in Tennessee.

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 Tennessee 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 Tennessee

Although bankruptcy is a federal filing, you can find local bankruptcy courts in every state. These courts are usually divided into districts. You can visit in person to find records, speak with the court clerk, and pay a fee per page, or you can search on the website to find records. The districts in Tennessee consist of:

• Eastern District of Tennessee
• Middle District of Tennessee

Tennessee Department of Revenue

Alternatively, you can contact the Tennessee Department of Revenue to ask for a list of recently filed tax liens. There are Department of Revenue tax offices throughout Tennessee for you to visit in person or you can use their main website to search for records. A few offices to explore are:

Knoxville Office

3711 Middlebrook Pike

Knoxville, TN 37921

Memphis Office

3150 Appling Road

Bartlett, TN 38133

Nashville Office

Andrew Jackson Building

500 Deaderick Street

Nashville, TN 37242

County/City Websites

Lien property sales are also advertised on county websites all over Tennessee. They will contain the property address, date, time, and location for the auction, and sometimes you can even register through the website right there. You can also review the rules and regulations of the auction. Some county resources to try are:

• Blount County Delinquent Property Tax Sale
• City of Bristol Delinquent Tax Sale
• City of Murfreesboro Property Tax Sales
• Davidson County Delinquent Tax Sale
• Knox County Tax Sale
• Montgomery County Delinquent Tax Sale
• Robertson County Delinquent Tax Sale
• Sevier County Tax Sale
• Shelby County Tax Sale

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

Lienholders often advertise their auctions in the local newspaper. You can find them in the classifieds, real estate section, or public notices. Try the list of local newspapers in Tennessee above or search for your own. Pay close attention to the auction details so you don't miss any.

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

Another way to find lien properties is to attend public auctions and sheriff's sales. Lien property sales are often advertised on public auction websites. Use the list of auction resources further down this page to check. You can also find them advertised on sheriff websites. Check out some of the ones below.

• Bradley County Sheriff's Sales
• Carter County Sheriff's Government Deals
• Davidson County Sheriff's Sales
• Montgomery County Master Sales
• Sequatchie County Auctions and Sales
• Shelby County Properties for Sale
• Williamson County Sheriff Sales
• Wilson County Notice of Sheriff's Sale

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 can be your best friend when looking for distressed property in Tennessee. Realtors, government offices, sheriff's departments, and lenders use social media to get the word out about off-market properties and auctions. For example, this private Facebook group offers a list of Tennessee off-market properties. Find groups like this and join them or find realtors, lawyers, title companies, or others you like and "follow" them so you receive notifications when they post something new that might interest you.

Consult Real Estate Agents and Brokers

Real estate agents and brokers are immersed in the local real estate market and know all the tricks of the trade. They also have access to exclusive information not available to anyone else. They may know off-market lien properties just waiting for the right offer. Contact real estate agents and brokers and work out a deal so they call you first when a new opportunity walks through the door. Try some of these below:

• Middle Tennessee Real Estate
• Team George Weeks Real Estate Agency
• Tennessee Real Estate Pros
• Tennessee Realty
• The Anderson Group Real Estate Services
• The Ashton Real Estate Group - RE/MAX

Specialty Websites - Distressed Properties

You can sometimes find distressed property in Tennessee through odd and unique websites. You might have to search a bit and try a few different search terms to find them, but they are out there. Try these to start:

• LandSearch
• My Tennessee Home Solution
• Rubin Lublin, LLC
• Shelby County Land Bank
• Tennessee State Government Surplus Real Estate
• TN Real Estate & Auction

Hire a Real Estate Attorney

Real estate attorneys work with people going through bankruptcy and foreclosure. They are great assets when it comes to knowing where to look to find distressed property in Tennessee. You can hire one to perform a lien search for you, or they may be working with clients who are in financial trouble and need to move property quickly. Use the list above of real estate attorneys to get started.

Short sales are an excellent avenue for finding pre-foreclosure properties. They result when a homeowner cannot pay their mortgage. After exhausting any mitigation options, the lender may suggest a short sale to sell the house quickly. It benefits the owner by getting out of debt, and the lender gets paid back the loan. The lender helps advertise, market, and pay the expenses of selling the house to get it gone quickly. These houses usually sell for the outstanding loan amount, which can be far less than market value, making them a great deal. Try contacting some local banks to find short sales in Tennessee.

Check Out Bank and Lender REO Listings

Banks are the places to look when searching for bank-owned or REO properties. When the bank seizes property and fails to sell it at auction because they are the highest bidder, they win and own it. Now they must sell it privately or in another auction. The property becomes bank-owned or real estate owned (REO). You can find these properties easily by contacting lenders and mortgage companies and asking to speak with the real estate department. Try these Tennessee banks below:

• Bank of Tennessee
• Citizens Bank
• First Community Bank of Tennessee
• First Horizon Bank
• First National Bank of Tennessee
• One Bank of Tennessee
• Tennessee State Bank

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

• Churchill Mortgage
• Community Mortgage Advisors
• First Community Mortgage
• Foundation Mortgage
• Lending Hand Mortgage LLC
• Music City Mortgage Inc.
• Nashville Mortgage Company
• The Wendy Thompson Lending Team

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 Tennessee, their estate will end up in probate. The court will appoint an executor to ensure that all the deceased's assets go to beneficiaries according to the will or next of kin. If the person died with extensive debts, the court may decide to sell property to pay them off. Sometimes the family will sell the property because they don't need it and want to free up cash. Either way, probate properties are another way to find quality distressed opportunities. Use the resources below to find probate properties in Tennessee.

Tennessee Chancery Court

Since probate is handled through the chancery courts, they are the first place to look. Each county has its own chancery court, and a probate is filed in the county where the person resided at the time of death. You can visit the court in person or check online. Many of the courts have search features you can use to find cases. Some courts to try are:

• Coffee County Chancery Court
• Davidson County Clerk & Master
• Hamilton County Chancery Court
• Jefferson County Chancery Court
• Knox County Chancery Court
• Madison County Chancery Court
• Rutherford County Chancery Court
• Shelby County Chancery Court

Local Obituaries

Another way to find potential probate property deals is to check local Tennessee obituaries regularly. You can then combine that information with other public records to find out about family members and discreetly contact them to see if they want to sell any property. Some sources for Tennessee obituaries include:

• Chattanooga Breaking News Obituaries
• Knoxville News Sentinel Obits
• Legacy
• The Commercial Appeal - Memphis Obituaries
• The Tennessean

Check local funeral homes for obituaries also. They usually list them on the home page. A few to try are:

• Atchley Funeral Home Obits
• Farrar Funeral Home Most Recent Obituaries
• Williamson Memorial Funeral Home & Cremation

Local Funeral Homes

Local funeral homes work with grieving families to memorialize their loved ones. They handle funerals, cremation, and other services. They get to know these families well and may know of some off-market property they intend to sell. You can partner with funeral homes and ask for them to make connections with you so you can be the first to hear about any potential distressed property deals. Some local Tennessee funeral homes include:

• Central Funeral Home LLC
• Hermitage Funeral Home and Memorial Service
• Madison Funeral Home
• Murfreesboro Funeral Home
• Taylor Funeral Home Inc.
• Tullahoma Funeral Home Inc
• Whitwell Memorial Funeral Home

Local Private Estate Auctions

After a loved one dies, some families choose to hold an estate sale and auction the property and belongings off themselves. These estate sales are advertised in newspapers, online through realty websites, and social media. Keep your eyes peeled for potential probate properties through private estate auctions.

Local Realtors & Lawyers

You can also find probate properties through realtors and lawyers. Families of deceased people use realtors to sell property they don't want. Lawyers work with families on wills and estate matters. Both may have insight on finding these sellers and may have leads they would be willing to share with you. Use the lists above to contact some local Tennessee realtors and real estate attorneys for help finding 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.

Most distressed property ends up sold through real estate auctions. Private individuals, realtors, government offices, tax officials, and lenders use auctions to sell off property to get paid. You can find these real estate auctions in various places. You may have to check a few to find everything that interests you. Attend as many as possible. Real estate is a numbers game, the more you attend, the better your chances of winning. Some places to look are:

Private Auction Houses

Private auction houses are experts at running real property auctions. They handle everything from advertising and marketing, to collecting registrations, posting the rules, holding the event, handling the paperwork, and overseeing the transfer of funds and property. Contact a few of these organizations to ask about any upcoming auctions.

• Bear Land Realty and Auction
• Durham Realty & Auction Co Inc.
• JD's Realty & Auction
• Fountain City Auction
• Grayson Auction & Sales
• Maples Realty & Auctions
• McLemore Auction Company LLC
• Powell Auction & Realty
• Ron Gregory Realty & Auction

State or City Resources

You should always check county websites (registry of deeds, sheriff's office, tax assessor, etc.) for mention of upcoming auctions. They liberally post these on the website often with links to the registration so you can attend. Check out city and county resources and use the lists above to help you.

Online Auction Platforms

You can use dozens of online realty/action platforms to find auctions. Realtors post the property on the MLS along with information about the auction and when and where it is being held. Using their built-in filters and tools, you can use these platforms to fine-tune your search. Some to try are:

• Auction.com
• Hubzu
• Parks Auction
• RealtyBid
• Tays Auctions
• Ten-X
• Tennessee Real Estate & Auction

Local Newspaper Auction Ads

Auction houses, county offices, sheriff's departments, lenders, and tax officials advertise real property auctions in the newspaper. You can find them in the classifieds, real estate section, or public notices. Try as many as you can. Some papers will list more auctions more frequently than others. Use the list of local Tennessee newspapers above to get started.

Real Estate Agents

Real estate agents often handle the sale of property for individuals, government offices, and lenders, among others. They post real estate auction properties on the MLS and realty websites to get the most exposure and hopefully a full house on auction day. Check with local realtors to see if they have any for sale and review realty websites. You can use filters to search for "foreclosure properties" exclusively.

Most distressed properties are sold for one main reason: to recoup some of the financial losses. However, there are also secondary reasons, such as the homeowner getting in over their head financially and needing to get out from under a heavy mortgage. When people get divorced or their life circumstances change, they may need to move quickly or sell the house for less. Distressed properties come onto the market after someone dies or when the owners get old and cannot keep up with the maintenance and necessary upgrades.

Although distressed properties can be a significant 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 regular real estate buyers won't want to deal with the hassles (delays, extra paperwork, encumbrances, legal issues, etc.) that can come with distressed property, but others may find it worth it. Some of the types of people who buy distressed property in Tennessee include:

Real Estate Investors

Real estate investors seek out distressed property looking for that gem in the pile of rocks. They search far and wide and attend many auctions to find property. Some will use the property as a quick flip to make a profit, others may use it for a long-term investment and rental unit. Some examples include:

• 901 Investments
• Anchor Investments
• Memphis Investors Group
• New Western
• The Benton Group
• Zealot

First Time Homebuyers

First-time homebuyers are another group that desires distressed property. For a young couple with limited cash to put down, a distressed property needing a little TLC can stretch their dollars further. They could potentially get into a larger house in a nicer area for less.

Nonprofits

Tennessee has roughly 40,000 nonprofit organizations. These companies do good in the world by helping others. They do so by operating on a streamlined budget, which does not leave them much money for real estate investments. When they need commercial or residential space, they turn to distressed property to make it work.

Developers

Developers also look for distressed property in certain situations. They might buy up tracts of land and bulldoze the houses to use the land for other purposes. Some developers buy commercial spaces and fix them up to rent out. Others may purchase real estate to fix up and turn a quick profit. Some Tennessee real estate developers include:

• Bristol Development LLC
• Boyle Investment
• Holladay Properties
• Southern Land Company
• Southeast Ventures
• The Anderson Group Real Estate Services
• Vastland Company

Wholesale Companies

Property wholesalers buy property very cheaply (pennies on the dollar) and then sell it for profit. They approach people in financial trouble and ask to buy their house for cash. They don't ask for anything from the owner, the seller doesn't need to repair anything or make upgrades. These wholesalers purchase the houses "as-is". Many desperate people will take them up on their offer. Some wholesalers in Tennessee are:

• Ark7
• BiggerPockets
• House Cashin
• Liz Buys Houses
• Sell My House Fast
• Tennessee Cash for Homes
• Real Estate Bees
• View Tennessee Homes