Distress sale

Distress sale,

Definition of Distress sale:

  1. Urgent sale of normal or distressed goods, at deeply discounted prices.

  2. Mortgage borrowers who can no longer meet the payments for their mortgaged property may opt to sell their property to pay off the mortgage. Examples of situations where distress sales occur include divorce, foreclosures, and relocations.

  3. A distress sale—also called a distressed sale—occurs when a property, stock, or other asset must be sold quickly. Distress sales often result in a financial loss for the seller who, for reasons of economic duress, must accept a lower price. The proceeds from these assets are most often used to pay debts or medical expenses or for other emergencies.

  4. A sale of goods or assets at reduced prices to raise much-needed funds.

How to use Distress sale in a sentence?

  1. The decline in prices may force a distress sale of collateral assets that, in turn, depresses asset prices.
  2. Buying a property through foreclosure or a distressed sale may mean that the property is in a poor state of repair.
  3. Distress sales often result in a financial loss for the seller because buyers realize that the seller is in a hurry to obtain funds and will offer a lower price.
  4. Distress sales occur when the seller needs to sell an asset urgently, often to pay debts or medical expenses or for other emergencies.
  5. A short sale is a form of distressed sale in which the homeowner attempts to sell their property even though the current market value is below the amount owed to their lender.

Meaning of Distress sale & Distress sale Definition