Distressed Property
En español: distressed property (propiedad bajo presión de venta)
A distressed property is one whose owner has less time than the asset does. The pressure can be a missed mortgage payment, a maturing loan, a partnership breaking up, or an estate with a deadline. It describes the seller's position rather than the building's condition, which is why a well-kept building can be distressed and a neglected one is often just neglected.
- The discount is paid for speed and certainty of closing, not for the roof. A building with no clock on it is not cheap.
- Condition is priced by what it costs to fix. Position is priced by how long the seller has left.
- Distress is curable until it is not. In Florida the right to sell ends when the clerk files the certificate of sale.
- A property marketed as distressed with no verifiable pressure behind it is a listing adjective, not a position.
Related terms
All termsLis Pendens
A lis pendens is a notice recorded in the public records announcing that a lawsuit affecting a specific property is pending.
FinanceShort Sale
A short sale is a sale of property for less than the debt secured against it, which the lender has to approve because it is being asked to release its mortgage without being paid in full.
ClosingREO (Real Estate Owned)
REO is property an institution owns because it took it back, at a foreclosure sale or by deed in lieu, and now holds as an asset it never wanted.
Terms arrive with the writing.
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