What does Distressed Property mean?

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.

Related Terms

Bungalow Home warranty Board of Equalization Add-On Interest Real Estate Settlement Procedures Act Sweat Equity Distressed Property Builder Upgrades Estimated Gross Costs of Buying Exclusive Right to Sell Covenants, Conditions and Restrictions (CC&Rs) Creditor Managed-Competition Lots Credit Report Ground Rent Contingency Rack Median Price