What is a distressed property list?
It’s a list of properties for sale that are considered distressed. A distressed property is one that is in preforeclosure, in foreclosure, or is a short sale. Preforeclosure means that the lender has issued a notice of default (NOD) because the owner is behind on his payments and foreclosure is imminent. Foreclosure means that the bank has seized the property and is selling it to get whatever they can out of it. A short sale is where an owner has negotiated with the bank to sell the home for less than what’s owed, and the bank has agreed to forgive the outstanding debt because of some hardship the owner is experiencing (like loss of a job – and “I owe more on the property than what it’s worth” is not a hardship). Because the banks want to get out from underneath distressed properties, and get whatever they can for it as quickly as they can, distressed properties can generally be purchased significantly below market value. So, people with access to listing services have parsed out all o
