The creditor can file a lien on your property. If the creditor chooses not to wait for you to sell or refinance the property, the creditor can try to “foreclose” on the judgment lien. This means that the creditor forces you to sell the property and pay what you owe with that money.
Credit card debt, unlike mortgage debt, is unsecured debt. This means your credit card company can’t come immediately take your stuff — including your home or car — when you don’t pay. Once an unsecured creditor obtains a judgment, they can then attach your non-exempt property in satisfaction of past-due debts.
What circumstances can you force a house sale?
Under what circumstances can you force a sale of property?
- An agreement within the Deed of Trust outlining the intentions of buying and selling a property.
- A divorced or separated couple who had purchased a property with an intention of having it as their matrimonial home.
Can a house be sold for credit card debt?
Having your home forced to be sold to satisfy a judgment that resulted from credit card debt is just not that common a practice. Credit card collection efforts are done in a one off capacity. If a creditor or debt buyer sues, they are typically suing for one debt individually.
Can a judgment creditor force the sale of my home?
Can a Judgment Creditor Sell My Home? Yes, judgment creditors can sell your home if you have outstanding debt, they have successfully placed a lien on your home, and you have not worked out arrangements to avoid a foreclosure. However, it is extremely uncommon for creditors to pursue this route.
Can a judge order you to sell your home?
Judges and the courts sometimes can order the sale of homes even when their owners don’t want to do so. Tip If you live in a state that has homesteading, your home may be protected to a point.
What to do if your creditor wants you to sell your home?
You need specialist advice. It is often necessary to apply to get the hearing heard at the court near you (as they can be scheduled in other locations). If you get an order against you, you can have it removed if you pay off the debt. If your creditor subsequently applies for an order for sale, you again need immediate]
