The convicted couple are desperate to downsize their family's lavish lifestyle since they still owe $214,588 of court-ordered restitution.
According to TMZ, the Real Housewives of New Jersey star and her high school sweetheart - both 42 - originally purchased the New Jersey home in 2002 for just $530K.
Six years of renovations later, the Giudices had doubled the suburban property to 10,000 square feet and boosted the worth to $1.2M.
According to Zillow, the Italian-American duo's estate boasts marble floors, numerous chandeliers, and custom moldings.
Teresa and Joe's fancy foyer features two gold-trimmed Cinderella staircases beneath an ornate crystal chandelier.
One of their four daughter's rooms reveals a cheetah print sofa and bright pink walls which read: 'Be Fabulous.'
Downstairs in their marble-countered kitchen there are more messages etched on the walls, such as 'give much' and 'gather often.'
The house has been on the market since September for $3.99M, but in November they lowered the cost by $500K. Their real estate decision comes two days after Teresa began her 15-month sentence for 41 counts of fraud at Federal Correctional Institution in Danbury, CT.
It's the same penitentiary where Piper Herman set her memoir Orange Is the New Black and Lauryn Hill did three months for tax evasion in 2013.
The raven-haired socialite was last photographed savoring her final taste of freedom - a $1.95 hot egg sandwich - at Elmer's Diner in Danbury.
Wake-up at the FCI is at 6AM and the former Celebrity Apprentice contestant will report to her prison-assigned job from 8AM-3PM.
Teresa will only be allowed 12 visits per month with her family, and she'll have to pay for up to 300 minutes a month of precious evening phone time.
In the meantime, Joe - born Giuseppe - will be caring for their daughters Gia, 14, Gabriella, 10, Milania, 8, and Audriana, 5.
After Teresa's jail time, the father-of-four will begin his own 41-month sentence, and possibly face deportation upon release because he is not a US citizen.
Back in October, Teresa and Joe were both sentenced due to their bankruptcy fraud and conspiracy to commit mail and wire fraud.
