Q: What is a Distressed Property?

Answer:

A: The term “destressed property” tends to have two meanings in the real estate world. The official meaning is a property that is pre-foreclosure and the owner has only a short time to sell it before it is repossessed. But the more common usage of the term “destressed property” is a property that is under financial OR physical disrepair.

For example, it may require a lot of repairs and restoration, or it is filled with trash, or the owner has lost their job and may not be able to make payments. All of these are examples of distressed properties in the modern usage of the term.