Involuntary Alienation
The definition of involuntary alienation in real estate is the loss of property through attachment, condemnation, foreclosure, sale for taxes or other involuntary transfer of title. Involuntary alienation differs from voluntary alienation in that in the latter, the residents vacate voluntarily, whereas they do not in the case of the former.
Perhaps the most commonly seen of these is foreclosure, in which a bank evicts the residents from their home due to unpaid mortgage payments. Let’s look at a couple of examples of involuntary alienation.
Examples of Involuntary Alienation in Real Estate
Richard is a twenty-four-year-old electrical engineer in a fairly remote town with a respectable population of 21,000 residents. After getting his certification, Richard finds a high-paying position with attractive benefits and steady work. As many professionals his age often do, Richard buys a flashy, expensive car, and starts payments on a large house that is well above his means.
As a result of the collapse of the largest employer in the county, Richard loses his job and is forced to take a lower-paying job just to make ends meet. After several months of decreased income, Richard’s savings have run out, and he begins to miss his house payments. One evening, after a hard day of work at his grueling new job, Richard returns home to find a large red-and-white sign reading “FORECLOSED” standing in his front yard.
This is an example of foreclosure, one of the most common types of involuntary alienation. As is sometimes the case with this type of action on the part of the bank, the foreclosure was unannounced, as residents often destroy the property in response to the eviction notice. There are other circumstances under which residents may be involuntarily alienated from their property such as failure to pay property taxes, but foreclosure is by far the most common.
Property seized by a bank is often sold at lower than it would otherwise sell for as the bank is simply interested in covering the money owed. When looking to buy a house ask the realtor about foreclosures.
Popular Real Estate Terms
Use of a parcel of land that will produce the greatest current value. ...
Style of life emphasizing outdoor activities, amenities, and recreation. Example are campers and barbecues. It is usually on a short-term basis. ...
The assessment sales ratio is a way of measuring the accuracy of a property’s assessed value when compared to the property’s selling price. This measurement gives the ...
Visible area that can be readily seen by outside traffic. This is particularly important for a commercial business. ...
Unsecured long-term debt. There is no collateral or lien on the property. A debenture can only be issued by a financially sound borrower with an excellent credit rating because no ...
An acre is defined as a land unit that is commonly used in the US customary and imperial systems of 66 by 660 feet (one chain by one furlong). An acre is a measure of volume used in many ...
Outside layer or covering for a structure. It may be a coating of material for protection against inclement weather. ...
Excess of money or fair value of property received on sale or exchange over the carrying value of the property. An example is the sale of a building when the cash received exceeda its ...
To depreciate is to lose value for something. Depreciation is the act of losing worth.Connecting with real estate, Property depreciation can be both an accounting method typically used to ...

Have a question or comment?
We're here to help.