What is a Distressed Property in Colorado?

As a homeowner or potential real estate investor, it is important to understand the different types of properties that exist in the market. One of the terms that you may come across is "distressed property." In Colorado, a distressed property is one that is being sold under unfavorable circumstances.

This article will help you understand what a distressed property is, the types of distressed properties, how they differ from foreclosures, and the best way to sell your distressed property fast.

What Does Distressed Mean?

A distressed property is one that is being sold under unfavorable circumstances. The most common reasons for a property to be considered distressed are financial difficulties of the owner, physical or structural problems with the property, or legal issues.

A distressed property can be a burden for the owner, who may be unable to make mortgage payments, pay property taxes or maintain the property. It may also be an opportunity for a buyer who is willing to take on the property's problems.

Distressed properties can be found in any type of real estate market. They may be single-family homes, multi-family homes, or commercial properties. Distressed properties are often sold for less than their market value, making them an attractive option for real estate investors who are looking for bargain deals.

Types of Distressed Properties

There are several types of distressed properties, and each type has its own unique set of challenges and opportunities. The most common types of distressed properties in Colorado are:

  • Foreclosure: A foreclosure occurs when a homeowner is unable to make mortgage payments, and the lender takes possession of the property. Foreclosed properties are often sold at auction or through a real estate agent.
  • Short Sale: A short sale occurs when a homeowner owes more on their mortgage than the property is worth. The lender agrees to accept less than what is owed on the mortgage, and the property is sold to a buyer.
  • Real Estate Owned Property: A real estate owned property is a property that has been foreclosed on and is now owned by the lender. These properties are often sold through a real estate agent.
  • Unlisted Property for Sale: An unlisted property for sale is one that is not listed on the Multiple Listing Service (MLS). These properties may be difficult to find, but they can be a great opportunity for buyers who are willing to do some research.
  • Speculative Value: A property with speculative value is one that has the potential to increase in value in the future, but is currently not worth its market value.

What is a Distressed Property vs Foreclosure?

A distressed property and a foreclosure are not the same thing, although they are often used interchangeably.

  • A distressed property refers to any property that is being sold under unfavorable circumstances.
  • Foreclosure is a specific legal process that occurs when a homeowner is unable to make mortgage payments.

While foreclosures are often sold at auction, distressed properties can be sold through a variety of channels, including real estate agents, cash home buyers, and short sales. It is important to note that purchasing a distressed property may come with its own set of challenges, including physical or structural problems with the property, legal issues, or liens on the property.

What is the Best Way to Sell My Distressed Property Fast?

If you are a distressed seller, you may be wondering what the best way is to sell your property quickly. One option is to sell your property is a cash home sale. Cash home buyers are real estate investors who can offer you a quick and hassle-free sale of your property. They will buy your property as-is, which means you won't have to make any repairs or upgrades to the property.

Another option is to sell your property through a real estate agent who specializes in distressed sales. These agents have experience working with distressed homeowners and can help you navigate the process of selling your property quickly. They can also help you negotiate with the lender if you are facing foreclosure.

The bottom line is that if you are a distressed seller, it is important to act quickly. The longer you wait, the more difficult it may be to sell your property. Consider all of your options, including selling to a cash home buyer or working with a real estate agent who specializes in distressed sales.

Sell Your House Fast in Denver, Colorado

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Credible Homes of Colorado. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 720-938-3634 to get a fast cash offer from our local home buyers in Colorado.

    Get Your Fair & Honest All-Cash Offer Today! No Obligations!

    By submitting this form, you agree to our Conditions of Use and Privacy Policy. You may receive both automated and personal text messages. Reply STOP at anytime to opt-out.

    Or Call Us Now At 720-938-3634