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Either these properties suffer from neglect and are in poor condition, or they are at. Web distressed properties are homes whose owners cannot maintain them. Web a distressed property is real estate property that has been neglected in some form by the current homeowner. A distressed property refers to real property. But there is a reason for that discount:. Web what is a distressed property? What is a distressed property—and how can you find them? Web seeking out distressed real estate can be an affordable entry point for investors. Web a distressed property is a home that’s on the brink of foreclosure or is already owned by a bank or has been repossessed by the mortgage lender.