Before we can check for Distressed Property, we need to know what we are searching for. One type Distressed Property is a Short Sale. So exactly what is a short sale? It literally is the sale of a property by the owner when the lender agrees to take less money than the lender is owed on that property; thus it is sold short of the total amount owed. Sometimes this makes it a very good buy, sometimes NOT. Every property situation is different and each lender handles each situation differently, thus Confusion. NOTE; if the short sale has not been “approved” by the bank,it can take many months and even years to complete the transaction.