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

Form of real estate organization created by an agreement between two or more individuals who contribute capital and/or their services. Advantages are: it is easily established with minimal ...

Recommending the use of another person or business. An example is an attorney referring a client to a CPA to handle tax planning for real estate transactions. ...

Partnership agreement where the parties consent to purchase the interest of those leaving the partnership while those leaving similarly consent to sell their interests to agreement for a ...

Method of eliminating the spaces between the solid fragments in fresh cement or mortar during the mixing process. This is done by a combination of constantly mixing, turning, centrifuging, ...

Funds of property bestowed upon a person or an institution. The income is used to serve a specific purpose for which the endowment was intended. ...

report containing financial information about a business or individual. The required financial statements for a real estate company are balance sheet, income statement, and statement of ...

To confirm, ratify, verify, and accept a transaction that can be canceled. ...

Charge by the lender to keep credit available to the potential borrower. Once the loan is made, interest is charged on the amount borrowed. Real estate businesses often need money available ...

Style of construction made popular in the 1800s. Its characteristics include very steep roof, ornate trim, diagonal braces, and exposed framing members. ...

Popular Real Estate Questions