The forced sale value on a Jamaican property title is the minimum recommended value that the property can be sold for, if it was used as a security and there is a default in payment to the financial institution that granted the loan.
Some institutions will require that persons who are applying for a mortgage and might be using a title that is in someone else’s name as a security. That title should have a forced sale value that is equivalent or above the amount that should be granted as the loan.
When a home owner defaults on his or her mortgage payments the lending institution will have to recover the balance owing. However that financial institution when selling that property to recover the debt has to sell it at the value that is recommended on the title.Properties would then be sold through private treaty sale, which is a way that offers the lending agency the opportunity to recover debts from proceeds of sale. The value for the property would not be disclosed to the public and purchasers would be invited to make bids to acquire such property.