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In 2023, the number of homes in the US occupied by homeowners declined to 67.5%. Becoming a homeowner in the US is more challenging than ever, and many young people are struggling to get onto the first rung of the property ladder.
Once you’re settled into your house, you need to know what a forced house sale is and what it could mean for you.
Keep reading as we explore forced house sales, explaining what they are and when you could be forced to sell your home. Knowing your rights can equip you to make more advantageous decisions as a homeowner!
What Is A Forced House Sale, And What Does It Involve?
A forced house sale is a property sanctioned without the homeowner's input or voluntary action. No, this doesn’t mean your house will be repossessed - that’s something else entirely. You could, however, face repossession if you refuse to leave the property upon the legal sale.
A forced sale generally occurs when there are two homeowners or more and typically a divorce lawyer is involved. To compel the co-owner to consent to the sale, the person wishing to sell the property must take legal action and submit their case to a court.
Should you be forced to sell, you would need to place the property on the market and sell it at a price consistent with a valuation. According to San Antonio roofing experts Presidio, valuations gather evidence to gauge the condition of the property and the fair market value, which includes observing things like roof condition, dampness, and foundation issues. The valuation ensures that all property owners receive the equity they are entitled to from the sale price.
The home sale process will be the same as any conventional sale; only one or more owners will be legally required to sell the property.
Conditions For A Forced House Sale
When can a forced house sale happen? Here are some of the most common circumstances that would warrant a forced house sale:
Divorce: If a couple is divorced, and one party still resides in their shared property, the co-owner may wish to sell. However, the other party may not always agree with this decision. The co-owner may have to take them to court with partition action to settle the matter. Unless there are mitigating circumstances (illness, children, or pregnancy, for example), or the co-owner can buy out the other party, the court will generally favor a forced sale.
Inheritance: Many homeowners bequeath properties to their children and grandchildren in their wills. However, there can be disputes when many people are inheriting the property. For instance, one inheritor may have sentimental value for the property and stand against selling, while the other needs the money. To settle this dispute, there must be a legal process. If a sale is decided, this is considered a forced sale.
Foreclosure/Bankruptcy: If a homeowner has defected on their mortgage or claimed bankruptcy, there may be a forced sale and potential repossession of the home should the occupant not vacate within the specified period.
There can be other instances, such as shared business property, where forced sales are necessary. But how do you protect yourself if you’re facing a forced sale?
How Long Does A Forced Sale Take?
A forced sale can take as little as a few months, or it can extend up to 18 months, depending upon the interest from buyers and any legal issues along the way.
What To Do When Facing A Forced Sale
When facing a forced sale, you can feel as though you’re out of options. However, before you begin court proceedings, there are a few things you can do to protect yourself, such as:
Hiring a lawyer: Legal assistance will help you clarify your case and options and present a more convincing argument in court. They will know any legal objections you can take to the forced sale, which could help immensely.
Arranging terms: If you don’t wish to sell the property right away, you may be able to agree on a specified period in court, giving you more time to prepare for moving and cherish the memories of your home.
Acquiring funds: You could buy out the co-owners of the property with the right legal aid. Speaking to a financial advisor about your lending options, such as a home equity loan, may allow you to pay off the co-owners and keep the property.
It’s not all said and done once you begin forced sale proceedings, and taking quick action could help you gather the support you need to keep your property.
Can You Submit An Appeal On A Forced House Sale?
You are well within your rights to submit an appeal for a forced house sale. If your lawyer can find a substantial objection, you may be successful. Should you not have a convincing argument, it’s best to consider whether an appeal's legal costs are worth it.
Summary
When evaluating a potential forced house sale, you must know your options. Owning property is a luxury in the modern climate, and letting your home slip through your grasp could be a truly regrettable experience. Hopefully, this guide has given you a better understanding of the forced sale process and how to navigate it.
