Can you be forced to sell your house to pay a debt?

+1 vote
asked May 4, 2019 in Credit by janicegu18 (210 points)
Can you be forced to sell your house to pay a debt?

1 Answer

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answered May 4, 2019 by Essmann (42,860 points)
Yes you can be forced to sell your house to pay off a debt owed to a creditor but that is unlikely to happen for a small amount of debt under $10,000.00

If the debt you owe is $10,000.00 or more and you fail to pay back the debt then the credit can take you to court and sue you and possibly put a lien on your home.

Then the Judge can force you to sell your home or allow the creditor to sell your home to make the money back to pay the debt.

The judge can also order you to pay back the debt and even garnish wages or take money from the bank account to pay back the creditor.

If you don't show up to court for the creditor to sue you then the judge says the creditor is the winner and will allow the creditor to put a lien on your home or possibly take it out from underneath you.

But you have to own the home and have the deed in your name before the creditor can take the home but if the bank still owns the home and you're paying a mortgage on that home then the creditor won't be able to take the home.

However you can still be forced to sell the home and give any profit you made back to the creditor to pay off the debt.

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