Distress sale

(redirected from Distressed Sales)

Distress sale

The selling of assets under adverse conditions, e.g., an investor may have to sell securities to cover a margin call.

Distress Sale

A rapid, urgent sale of assets, often at a loss. Distressed sales often occur when cash is needed to cover immediate needs or debts. They are also associated with margin calls. A common example of a distressed sale is the rapid sale of real estate when the owner can no longer make the mortgage payments; he/she must sell the property immediately to pay off the mortgage, even if it involves losing money on the property. See also: Distressed securities.
References in periodicals archive ?
The bureau also said the replacement, a policy allowing distressed sales to "eligible entities" had been suspended after an appeals court vacated the definition.
New York saw its share of distressed sales climb by 3 percent, while Washington, D.
On a month-over-month basis, excluding distressed sales, CoreLogic reported that home prices increased by 0.
As distressed sales continue to decline, the share of sales is tilting toward more expensive homes, boosting the nationwide median sales price," said Daren Blomquist, vice president of RealtyTrac.
Distressed sales accounted for 9 percent of the purchases in July -- the lowest share since the association began tracking the figure in October 2008.
The report suggested that Fannie Mae, Freddie Mac and the Federal Housing Administration should refuse to accept distressed sales as valid comps, which would force a reassessment of non-distressed properties.
Rather, the share of distressed sales -- either foreclosures or short sales by banks -- has decreased to 25 percent of the market, down from 30 percent in the prior year.
Excluding distressed sales, prices fared even better, gaining 2.
Reliance on distressed sales as comparables in non-distressed property appraisals, without appropriate analysis, promotes low appraisals.
Nationwide, distressed sales made up 23 percent of all home purchases.
Across the 50 largest metropolitan statistical areas (MSAs), the price growth of existing homes, excluding distressed sales, ranged from -8.
Distressed sales, including short sales and real estate owned transactions, accounted for a large portion of the drop in U.