GlossaryForeclosure value

What means Foreclosure value?

Foreclosure value indicates the expected proceeds from the sale of a property under forced sale conditions, ascertained through an appraisal.

This value is essential for financial institutions when issuing a business mortgage. Typically, the foreclosure value of an existing commercial property ranges from 80-85% of its appraised value, while for new constructions, it can reach up to 90% of the property price.