In life, there are many circumstances that can lead to the liquidation of a home. Most people refer to these circumstances as the “4 D’s”: downsizing, divorce, death, and debt. These situations often mean giving up something valuable, such as a home, especially if it’s necessary to reduce debt or make money to take care of legal expenses. This is known commonly as an estate liquidation.
For the most part, as the term “liquidation” implies, a real estate liquidation will take place after a homeowner has declared bankruptcy. In this case, a person will have all of their assets sold off through auction liquidation services. This type of auction differs from an estate sale because at this point everything belongs to the liquidators. However, in some cases, a person who passes away may not have any heirs. In this case, the real estate liquidation could be the responsibility of a bank, appraisers, a Realtor, or a lawyer.
Also unlike estate sales is that the real estate liquidation only involves major property. This could mean selling a house, motor home, RV, vehicles, boats, or even livestock if it is part of the estate. Other items that might be sold in a liquidation auction include stocks, bonds, fine jewelry and art, and coin collections. While some of these things could be included in estate sales, it is not necessary for a liquidation expert to be involved in selling common household items. This can be done by any sort of auction house.
Once these items go to auction, they are sold in a variety of ways. Some of them are only done in person, and some auctions only allow certain types of bidders in. For example, an auto auction might only involve dealerships rather than members of the public. Many auctions today, even for those who are going through a business or retail liquidation, are online auctions. Online auctions can allow anyone to participate from any location.
If you think you might be subject to an estate liquidation, it’s best to consult a lawyer, such as a bankruptcy attorney. Have more questions? Feel free to ask them below.
