Definition of "Involuntary alienation"

Lisa Turner real estate agent

Written by

Lisa Turnerelite badge icon

Lisa Turner - Selman And Associates

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

(1) Financial ability and soundness of a business or individual to afford the purchase of property. (2) Worth of the dollar in real terms considering inflation. ...

Lender's written statement and accounting for the remaining balance, date of maturity, and interest rate on a mortgage. The lender is certifying this information to the borrower or any ...

Financial interest a developer has in a development. The interest may be a direct investment or a percentage interest in the overall profit. ...

Federal agency within the Department of Housing and Urban Development that provides financing to home buyers, particularly those with little cash or with a need to lower monthly payments. ...

Use of borrowed funds to enhance expected returns. It is anticipated that the investment will earn a return exceeding the after-tax cost of borrowing. ...

An open surface constructed on top of a flat roof. Normally, a railing is constructed on the sides of a deck roof. See also deck. ...

Retail businesses in the same locality having a parking lot servicing them. The center may contain a department store, small retailers, and restaurants. There may also be a movie theater. ...

See quantity survey method. ...

Individual: Adjusted gross income less itemized deductions and personal exemptions. After taxable income is computed, the tax to be paid can be determined by looking at the tax rate ...

Popular Real Estate Questions