Real Estate Glossary

What is Distressed Property?

A distressed property is a property that is in poor condition or is in financial distress. Distressed properties may be abandoned, neglected, or in need of significant repairs, and they may be sold at a discounted price in order to attract buyers. Distressed properties may also be owned by borrowers who are facing financial difficulties, such as a lack of income or an inability to make mortgage payments. These properties may be at risk of foreclosure, and they may be sold through a short sale or a auction.