A distressed property is a piece of real estate that is under foreclosure, already owned by a mortgage company or owned by someone who is no longer willing to make mortgage repayments, due to a divorce or bereavement. Therefore, the term ‘distressed’ does not necessarily refer to the state of the property but to the circumstances of the owner that make them more motivated to sell the property fast. Because of the urgency of the situation it is likely that the property will sell below its market value, making it a good opportunity for property investors, especially those specialising in ‘flipping’ properties. At the same time, distressed properties may require more cash funds as some need a large amount of work before they are made livable again. Most banks are unwilling to lend money for refurbishments so this cost often falls on the buyer.