Legal Definitions - forced sale

A forced sale is a type of sale that happens when someone is legally required to sell something, rather than choosing to sell it for economic reasons. This can happen in situations like a mortgage foreclosure or a bankruptcy proceeding.

For example, if someone falls behind on their mortgage payments and the bank forecloses on their home, the bank may be legally required to sell the home in a forced sale. Similarly, if a business goes bankrupt, the court may order a forced sale of the company's assets to pay off its debts.

It's important to note that a forced sale is different from a voluntary sale, which happens when someone chooses to sell something for economic reasons, such as wanting to downsize or move to a new location.