distressed real estate

Distressed real estate refers to properties that are under financial pressure, often because the owner is unable to meet mortgage payments or other obligations. Such properties may be facing foreclosure, looming bank repossession, or significant financial hardship. They are typically sold at lower prices to encourage quick sales and recover owed amounts. Investors and buyers see distressed real estate as an opportunity for potential value appreciation or renovation, but they also carry higher risks due to underlying issues or property's condition. Overall, it represents a market segment where distressed properties are bought and sold amid financial challenges.