There is a lot of jargon for the realty business, and one such phrase that many people donâ€™t know the meaning of is â€śdistressed home salesâ€ť. So, what are distressed home sales? Distressed home sales, or distressed property, is when a home or property is needed to be sold in a quick manner, and often suffers loss because of it. Typically, this happens when a property is about to be foreclosed on, so it is being sold at a very low priceâ€”often at a rate much lower than its value on the market. Another example of a distressed home sale is a house that is being sold by its mortgage. An important thing to keep in mind, though, that just because the house is being sold for less than its market value does not mean it is being sold for less than it is worth.