To find a more budget-friendly deal, you might want to search for what’s known as a distressed property.
What is a distressed property?
A distressed property will cost less than other similar-sized homes in the area. But there is a reason for that discount: Typically, the home is either under foreclosure, or the lender is trying to sell it. The most common reason for a home to be classified as a distressed property is a homeowner who couldn’t pay the mortgage or the property taxes.
Distressed property sales make up a small portion of the overall housing market. According to data from the National Association of Realtors, distressed sales accounted for less than 1 percent of all transactions in each of the first two months of 2022.
Types of distressed properties
There are several types of distressed properties in real estate. Here’s a rundown of the most common kinds you might find in your search.
Foreclosures
A foreclosed property is the most commonly known type of distressed property. In this scenario, the homeowner has failed to make his or her monthly mortgage payments for many months in a row, and the lender has officially filed a default notice.
Some people buy homes that are in preforeclosure – typically when the owner has hit the 90-day past-due point in payments – and others buy them when they are fully foreclosed at public auctions.
REOs
REO stands for real estate-owned, which is synonymous with bank-owned. If a property is described as an REO, the lender is the seller. In this case, the home went into foreclosure, and it did not sell at auction. So now, the lender is working to recoup some of its losses.
Short sales
In a short sale, the lender has not yet taken the property back. Instead, it has worked out a deal with the current owner to sell it for less than it’s worth. In this scenario, the property is on the path to foreclosure, but a short sale can avoid that final piece of the credit-destroying puzzle. So, the property is technically distressed, but it’s likely on the earlier end of that stress.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
Get Started Now
Related News
Invest in Real Estate Without Owning a Single Property Invest in Real Estate Without Owning a Single Property – This REIT nears a quarter century of market-beating returns, and that could be just the start. Real estate has long been a great way for investors to build wealth. That wealth can come both from the […]
SF Pricing Explained SF Pricing Explained – We have multiple options with our skip tracing and property data services. I’m going to break it down for you so you can make the best decision for your business. For skip tracing, there’s member pricing and nonmember pricing. Now you’re going to get the same data for […]
Leveraging these key strategies can enable investors to optimize and accelerate their success. Success in Business – When it comes to running a successful business, there are certain hallmarks that appear in nearly every entrepreneurial operation. It’s no different for real estate investing and financial ventures. Leveraging these key strategies can enable investors to optimize […]