A quick sale is when a homeowner sells a property to avoid foreclosure. Before a mortgage defaults, borrowers offer the property for sale. Quick sales usually occur within a 90 day period between the initial notice of default and the actual foreclosure sale.
Properties sold through a quick sale option typically sell below market price. This provides an opportunity for investors and offers the homeowner a way to head off foreclosure before it happens. Quick sales are arranged so that proceeds will be enough to pay the borrower's outstanding mortgage debt in total and release them from all financial obligation.