A Forced Sale Value (FSV) or 90 day value refers to the value of a property if it is sold within 90 days, whether through estate agents, liquidators or auctioneers, often to a much smaller pool of buyers than seen in the open market
To sell a property within 90 days reduces its value typically by 30%, resulting in it achieving 70% of its 180 day Open Market Value (OMV).
Ethical quick-sale companies seek to purchase property for its Forced Sale Value, but they often cover all the vendors legal costs and avoid the need for estate agents.
If a lender repossesses and sells a property, the vendor has no control over how much the property is sold for or the costs incurred.
Lenders often sell properties for less than the Forced Sale Value and the vendor is still responsible for mortgage/loan repayments until the completion of the sale, all the lender/legal and auctioneer costs.
In summary if a vendor can dispose of their property themselves, whether with a quick-sale company or on the Open Market with a short term loan it doesn’t matter, they are far better options than allowing a lender to take control.