For some people, the debt situation becomes so serious that the creditor takes the step of requesting the compulsory sale of a car, house or cottage. This happens if you do not pay your bills, even after a debt collection notice and a demand for payment. Your creditor will then go to the district court to have the claim paid through a forced sale.
The district court approves a forced sale if you have no objections or are unable to pay the debt you owe to the creditor. The district court then appoints an assistant, a lawyer or similar, to carry out the sale. The actual process will vary from case to case. The most important thing you can do as a debtor is to have an open dialogue with your creditor.
In a forced sale of a property, the property is put up for sale and often marketed in the same way as other homes. The main difference is that the buyer must familiarise themselves with the rights that apply and will, for example, not be able to take out change of ownership insurance and have limited rights of appeal. Bids received for the property must also stand for 6 weeks before they can be accepted because the bid must be approved by the plaintiff and the court, and in order for you to be able to pay all the claims against you. This means that it can be challenging to get equalgood price on a forced sale as in a voluntary sale.
If you manage to pay the claims against you, the forced sale will be stopped. Creditors will then have no reason to sell your home.
If you can provide security on your home, refinancing may be the solution to stop foreclosure. When we refinance with mortgage security, we consolidate all your debts into a new, fresh mortgage and pay off all your creditors. This will give you time to sell your home yourself and avoid having to go through a foreclosure sale. Refinancing can also help you get your finances in order, and some people are able to keep their house.
We want to help people with a challenging economy.
Everyone who applies for a loan with us will receive feedback from a financial advisor, with information on what is needed for us to help with refinancing.
It is also a requirement from our side that getting a loan from Kraft Bank is actually helpful. We therefore only make offers to those who will get a better financial situation by refinancing their loans with us. That's what we call providing real help.
This article is part of the category Economic first aid , a collection of articles that deal with topics related to a strained economic situation, such as reminders and collection, payment notices, garnishments and forced sales. Read more about Financial first aid
