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To mark to market a loan, you take the NPV on the stream of payments of the loan, discounted by the current market rate. And then subtract the UPB from the NPV value.
Example $10MM loan, 10 year at 5.0%. Market rate is 7.50%. NVP of the 5% loan payments at 7.5% is $8,373,745.59. Loss to Market = 8,373.745.59 - 10,000,000 = ($1,626,254.41).
Once you sell, you have to add in broker/marketing fees, third party fees and legal bills which will reduce your price even more.
On distressed, you do the same thing except your rate will be much higher to account for whatever issue is happening at the property.