Subject is a Short Sale

[residentialguy]

Duress is a legal term with a legal definition: duress n. the use of force, false imprisonment or threats (and possibly psychological torture or "brainwashing") to compel someone to act contrary to his/her wishes or interests. If duress is used to get someone to sign an agreement or execute a will, a court may find them null and void.

How is this involved in a short sale or REO sale?

Duress is a powerful effect or influence and is not limited to torture or law. Duress is a hardship or pressure. Banks are under duress. They didn't want the house and were forced to take it due to the homeowner breaking the mortgage contract and they are financially forced to liquidate these homes.

 

[Mile High Trout]

I'm taking it that in a practical appraisal situation that using the words
'Distressed' is better than 'Under Duress'.