'Distressed Property' and the Mortgagee's Right of Sale
What is ‘Distressed Property’?
There have been a number of instances of good clients suffering from what I call a “distressed property” in recent times as a result of the recession. The “distressed property” in many cases is not necessarily the family home. More often than not it is a property purchased by the client as an investment, often immediately before the recession began.
Typically the market value of the property has eroded significantly since the date of purchase, sometimes to the point where the client’s equity in the property is negative. However, for a variety of reasons, the client has not sold the property, or not been able to sell.
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