How Long is an appraisal good for?

[vicmost]

I have been planning to file chapter 13 for the last 10 months. I had to wait until my home value dropped below what I owed on my second so I could do a lien strip. During this "waiting" period I tried to get a loan modification. I was unsuccessful and was placed on a second "trial period"..etc..(long story)...
My home value started to climb in value so I immediately got an appraisal done on April 15th and turned all my paperwork into my Lawyer May 1st...(I should be filing any day now..)Meanwhile my home value has continued to rise and I am very fearful that my Appraised value done on April 15th will not be accepted by the court.
I know this is something I should be discussing with my lawyer (believe me, I am!) But I would like to hear some of your personal experiences with this. It's probably district specific and may even vary from judge to judge.
Anyone have any ideas on how long an appraisal is valid for?

I live in the Southern California area if that helps...
Thanks in advance for any input...It helps calm me down!

[walkthaplank]

Mine was done in April and I filed (successfully) late September. Unless the bank contests the lien strip it really won't matter. If they do contest it, they'll do their own appraisal and then the judge can decide which is the better expert.

Good luck!

[walkthaplank]

Oh and for goodness sake, make sure they include a declaration from the appraiser in the lien strip motion... sheesh! ;)

[justbroke]

Yes, unless there is an opposition to your lien strip, it won't be brought up. Appraisals should be done as close as possible to the filing date, because the value is set on the petition date.

Nothing to worry about at this point. Just get filed soon.

[StartingOver08]

Normally appraisals are good for 4 months. But BK appraisals have a different use than a traditional appraisal and generally a shorter shelf life. However as the others pointed out just have it as close to filing as possible. You may have ordered your appraisal just as properties were peaking due to the tax credit rush ending April 30 2010.

BTW, I don't know how your values could be rising in your location - aren't you in the Inland Empire in CA?

[vicmost]

I feel a lot better after reading your replies. I'll rest a little easier tonight.
For what it is worth I have done two professional appraisals. June 2009 (270k) and April 2010 (280K). Ironically that is the exact value that Zillow had on both dates? So in my case it appears to be accurate. Zillow has my value now at 305K and my watermark was 285k...thus the panic attack. Walkthaplank and I have the same lawyer and live in simular areas so I feel much better now...
I don't know if anyone tried a loan mod before filing bk. I have had nothing but problems. My first one was denied after making 5 months of payments on a 3 month trial basis stating that I didn't make enough money, I contested and then they said I didn't send in the doccuments. I showed proof that they recieved the doccuments and all they would do is set me up on another 3 month trial period with a higher payment? And when they say 3 months they really mean six months! I've found that they only have a 6% success rate which leads me to believe that they are just stringing things out so that they don't have all the foreclosures at one time. In the meanwhile they have someone taking care of the property and they recieve some money...Just my personal experience...
As always thanks to all for your replies!

[justbroke]

For what it is worth I have done two professional appraisals. June 2009 (270k) and April 2010 (280K). Ironically that is the exact value that Zillow had on both dates? So in my case it appears to be accurate.

Or, your appraiser is using Zillow as a benchmark...

[vicmost]

Funny!

Or, your appraiser is using Zillow as a benchmark...

I thought the very same thing! He was rather shocked when I revealed that to him so I don't believe so....Frankly I don't care if he gets it from a crystal ball or a Ouija board, just as long as it hold up in court!

[justbroke]

I thought the very same thing! He was rather shocked when I revealed that to him so I don't believe so....Frankly I don't care if he gets it from a crystal ball or Ouija board, just as long as it hold up in court!

Actually, they do get it from a....

[vicmost]

Normally appraisals are good for 4 months. But BK appraisals have a different use than a traditional appraisal and generally a shorter shelf life. However as the others pointed out just have it as close to filing as possible. You may have ordered your appraisal just as properties were peaking due to the tax credit rush ending April 30 2010.

BTW, I don't know how your values could be rising in your location - aren't you in the Inland Empire in CA?

Most areas in the inland empire are still falling. However my particular are is not....It's kind of a weird hoping your home value goes down...quite a turnaround from years gone by.