06.29.2026 PropStream
Disclaimer: PropStream does not offer legal advice. This article is for informational purposes only. We recommend performing individual research or consulting legal professionals before contacting off-market leads.
|
Key Takeaways:
|
As a real estate investor, browsing MLS listings will rarely find you a great deal because you’re competing against many other buyers. Off-market listings are another story. Though the owners aren’t trying to sell, they may be open to the right offer, and you may find that you have little, if any, competition.
The trick is identifying off-market properties that show signs of distress. These are the ones with owners who may benefit from selling (even if they don’t realize it yet). As an investor, you could make an attractive cash offer that helps them move on from a challenging situation.
In this article, we’ll cover ten distress signals that every serious off-market investor should know of and how to use PropStream to identify properties with them. By focusing on one or multiple, you can source opportunities in any market.
1. Foreclosures
Foreclosure is the legal process by which a lender seizes a property after the homeowner stops making their mortgage payments. Since Q1 2025, U.S. foreclosure filings have been steadily rising, reaching 1 filing for every 1,211 housing units in Q1 2026.
With PropStream, you can filter out properties with foreclosure notices that have yet to be foreclosed on (aka pre-foreclosure). This is a great time to make an offer since a sale could help the owner avoid foreclosure and any accompanying equity loss or credit damage.
You can also look at an individual property’s Foreclosure Factor. This PropStream Intelligence feature uses AI to predict the likelihood that a property will go into foreclosure. The higher the score, the larger the opportunity.
2. Tax Delinquency
When a homeowner falls behind on their property taxes, they and their property are considered tax-delinquent. According to a recent report, the national average tax delinquency rate is up, reaching 5.1% in 2025.
This is a major opportunity for investors to help since tax-delinquent homeowners are often under financial pressure to sell. For example, they may want to sell to avoid tax foreclosure and rid themselves of the tax liability.
Use PropStream’s Tax Delinquency Lead List, which includes properties marked tax-delinquent by the county Tax Assessor, to identify these prospects quickly.
3. Absentee Ownership
Absentee ownership is when a property owner doesn’t occupy or actively manage a property. Think landlords, heirs, or investors who live out of state, out of the country, or even elsewhere locally. Such owners may be more open to selling since they’re no longer personally involved with the property.
Pro Tip: Use PropStream’s Absentee Owner filter to locate absentee owners with the following criteria: Out of State, Out of Country, or Local.
4. Pre-Probate
Probate property is a home left behind by a deceased owner.
A court will typically transfer ownership of the property to an heir or liquidate it to pay the deceased’s outstanding debts. Either way, there’s often an opportunity to buy at a discount (the court may need to liquidate fast, or the heir(s) may not want the property because they live out of state or can’t afford the mortgage).
PropStream offers a Pre-Probate Lead List that includes only homes where one of the owners on title is deceased. The property still belongs to the surviving owner, but they may struggle to maintain it or pay for it without the other owner, which may increase their motivation to sell.
5. Failed or Expired Listings
Failed listings are properties that were listed for sale but did not sell for various reasons, such as overpricing, poor marketing, or an unfavorable location. An expired listing is a specific type of failed listing, one that reached the end of its listing contract without selling.
For investors, failed or expired listings can be great leads because the owner has already demonstrated a clear interest in selling. You can find them by using PropStream’s Failed Listings Lead List or selecting the Expired option under the MLS tab in the filter menu.
Related Read: Failed Listings vs. Expired Listings: Are They the Same?
6. High Equity Owners (With Distress Indicators)
PropStream classifies high equity owners as those with (i) 50% or more equity, (ii) less than 50% Loan-to-Value Ratio, or (iii) $100,000 or more in equity. When you combine this filter with other distress indicators, you can pinpoint leads who are both motivated to sell and have a lot to gain by doing so (turning their equity into cash).
Alternatively, you can filter leads in the reverse order: choose a Lead List that indicates financial instability and add a custom equity threshold under the Value & Equity menu.
7. Tired Landlords
In PropStream, tired landlords are those who’ve owned rental property for more than 15 years.
The idea is that seasoned landlords may be tired of dealing with repairs, non-paying tenants, regulation changes, higher insurance costs, and other challenges. By offering to take a property off a tired landlord’s hands, you could be doing them a favor.
Simply select PropStream’s Tired Landlords Lead List to see which properties are owned by tired landlords in your market.
8. Vacant Properties
Vacant properties are homes that the U.S. Postal Service has flagged as vacant because mail is no longer being collected or is continuously returned to the sender. Though a vacant home doesn’t necessarily mean the owner is interested in selling, there’s a strong chance that they are, especially if you can identify other distress signals such as code violations, deferred maintenance, or tax delinquency.
PropStream has a dedicated Vacant Lead List for quickly identifying these leads in your market.
Related Read: Vacant and Abandoned Properties: What’s the Difference?
9. Divorce
Divorce leads are homeowners with a divorce filing.
Often, divorcing homeowners want to sell their home to split the earnings and move on. Depending on the situation and the property’s condition, they may need to sell quickly. Investors who take a sensitive approach and make the right offer at the right time can often buy at a discount.
Identify divorce leads quickly with PropStream’s dedicated Divorce Lead List.
10. Senior Owners
PropStream’s Senior Owners Lead List identifies properties where the current ownership (i) exceeds 25 years, (ii) the property owner has a senior tax exemption, or (iii) the current owner has an open reverse mortgage. These can be excellent leads since many senior homeowners face physical limitations that make managing or living in their home difficult.
By layering on additional filters across the number of stories, number of beds and bathrooms, etc., you can further pinpoint senior owners most likely to consider a sale.
Find Your Next Off-Market Lead With PropStream Today
As you can see, there are many approaches to finding off-market sellers.
The best part is, you don’t have to stick to just one. You can try focusing on different lead types or even combining multiple filters to narrow down to owners with the strongest selling motivation.
*PropStream engages an independent third-party to perform skip tracing.
