A forced sale is an involuntary transaction in which the sale is based upon legal and not economic factors, such as a decree, execution, or something different than mere inability to maintain the property. If the sale is made for purely economic reasons, it is considered voluntary. However, if the seller or buyer is forced to act under legal factors, it is a considered forced sale. For example, a forced sale may occur in a mortgage foreclosure sale or a bankruptcy proceeding.
[Last updated in July of 2021 by the Wex Definitions Team]