Understanding Distress Signals

Understanding Distress Signals

PropIntel tracks four primary distress signals and computes a composite Distress Score (0-100) for every property that has one or more active signals.

The Four Distress Signals

Tax Delinquency (weight: 30%) The property owner has not paid property taxes by the county deadline. Delinquent properties may proceed to tax sale (tax deed auction or tax lien sale depending on the state). The severity is based on delinquency amount relative to property value and duration.

Lis Pendens (weight: 25%) A lis pendens is a legal notice filed against the property, typically indicating a pending lawsuit — most commonly a foreclosure filing. This signals the owner is in financial distress and the lender is taking action. Properties with lis pendens filings are in pre-foreclosure.

Code Violations (weight: 20%) Unresolved building or property maintenance violations issued by county or municipal code enforcement. Multiple active violations indicate a property that is not being maintained, which often correlates with owner distress or abandonment.

Probate / Estate (weight: 15%) The property owner has died and the property is in a probate or estate proceeding. Heirs may be motivated to sell quickly, especially if they live out of state or have no interest in managing the property.

Vacancy Indicators (weight: 10%) Derived from address mismatches (owner's mailing address differs significantly from property address), utility disconnects, and other signals suggesting the property may be vacant. Vacancy amplifies the impact of other distress signals.

The Composite Distress Score

The distress score is a weighted composite of all active signals:

• 0-20: Minimal distress — one minor signal or no signals
• 20-40: Low distress — one moderate signal
• 40-60: Moderate distress — multiple signals or one severe signal
• 60-80: High distress — multiple moderate-to-severe signals
• 80-100: Severe distress — multiple severe signals stacked

How to Use Distress Scores

• Filter by distress — Enable distress filters in the sidebar to see only properties with active signals
• Sort by distress score — In the DataGrid, sort by the Distress column to find the most distressed properties
• Use the Distress Heatmap — Toggle the distress heatmap to see geographic clusters of distress
• Combine with AI scoring — Run the Tax Distressed or Pre-Foreclosure deal profile on distressed properties for AI-powered ranking