Trustee wants home

[bangingmyhead]

Can anyone tell me what happens when the trustee seizes your home. My 341 was 5 weeks ago no asset, now trustee has sent letter to lawyer after having realtor come out that we have $20,000.00 equity and after realtor fees we can keep the house for $11,000.00. We have no money to pay this so will we have to move out after he files suit, do we continue to pay house payment? We had wanted to reaffirm house but looks like now we can't. What are the steps involved when he seizes your home? Any help might keep me from "bangingmyhead" Thanks so much for this board, it has really helped me understand so many things our lawyer doesn't and hasn't told us.

[BKOnce]

I hate that realtor. All they care is their money, ...even have to screw up people lives...

[lrprn]

So sorry to hear about this, BMH. From the tone of your post, I'm assuming your lawyer didn't warn you this might happen? Which state are you in? (If we know that, we can tell more about how home seizures and foreclosures are handled in your state.) Also how did you and your lawyer estimate the value of your home when you filed? Does your state have a homestead exemption and/or a wild card exemption?

If you think the trustee's realtor's estimate of your home's value against your current equity is too high, you can have a certified home value estimate done by an independent property evaluator in your area. If you can show that the trustee's realtor over-valued your home, your lawyer can fight this. Please keep us posted about what happens, ok? And remember we're here any time for venting or if you just need to talk.

[bangingmyhead]

Thank you for your kind words. I am in Va. My lawyer used our state tax assessment to go by. He kept telling us we would not lose the house, not to worry, so at our nightmare 341 meeting the trustee started asking about equity in the home and said he knew it would be more than lawyer stated. So he sent a realtor to appraise, thus the large armount of equity. Our lawyer is still telling us not to worry to get estimates of any home repairs that need to be done and he will send with letter to trustee. He also said that the only joint debts we have together are the house and cars that we wanted to reaffirm. All other debts are in each own name. So I don't know if this has any bearing as to how he would distribute the equity. Trustee knows only income coming in is my pension as husband has been out of work for over a year due to health problems and can pay mtg and auto loans. Can the trustee take our equity if no joint debts?

[bangingmyhead]

Need to add, did file homestead right after 341, in Va. it is $10,000.00

[petrified]

Did you file a joint BK7?

How much did the realtor value the property vs. property tax assessment? What comps were used? What repairs are needed? When did you last refinance your home or when was last time you had an appraisal done? It might be worth spending $300 to get an appraisal done by an actual licensed appraiser vs a realtor.

I saw some interesting cases while I was researching my situation - I'll see if I can find them again.

Don't panic, don't give up - if you have a good attorney, you will prevail.....

P

[petrified]

If after costs to sell, Trustee says there is $11k equity available and you have filed for $10k of exemptions, then he will only get $1k. Hardly seems worth it....

P

[bangingmyhead]

The realtor appraised the house $30,000.00 over tax assesment. So after deducting homestead of $10,000 there is $20,000 equity. Had refin about 2 yrs ago and realtor appraised for $12,000 more than when refin. The only home repairs that are needed are replacement windows which we are getting an estimate on this week. The only joint debts are the house and auto loans. All credit cards are in each name only.

[nottold]

Hi Banging

We had to have a realtor come before spouse filed. Told him to put it as what we would get as a quick sale. It came in fine(although I think he was a little drunk). Also, in Ct where we are there is a certain exemption that you can take. Hope this helps.

Nottold

[cherir]

FYI, in most markets, tax assessment has nothing to do with true value and is always several to many thousands less than actual value, even in today's declining markets. The only exceptions to this include houses that are in total disrepair but not obviously so. The tax assessors assume there has been reasonable and standard upkeep on the home.

That said, I would not take one agent's opinion of value. I would get 3, so at least two more. Comps (comparable home sales) should not go back farther than 6 months, and should be within 1/2 mile of your home, if possible. "Apples to apples" should be compared. Example: one story to one story, two story to two story.

I'm not sure why your attorney used tax assessment value since you refied 2 years ago. Your refinance stated value at that time or the bank wouldn't have loaned the money unless you had super excellent credit at that time.

[Granny]

Would it also be helpful to have a GOOD reliable home inspection done? The ones I have seen, the guys ran a fine toothed comb over the house and found things that needed to be repaired that were not obvious. I remember one house where he found some joists in the attic that needed replacing. The estimated repairs came in at several thousand dollars, and that was a house that was on the market to be sold so it was supposed to be in tip top shape.

[petrified]

Most counties in VA have recently issued new tax assessments that are exactly the same as the value of the home - fair market value. Our tax assessment was exactly the same as the appraised value this year. That is probably why the attorney used it.

I don't think using a realtor to assess value is a good thing. They can use comps to manipulate the value to anything they want - it doesn't mean that is what the house would sell for in reality. So, in the case of the OP, they would probably be better off getting an appraisal done by a licensed appraiser. Or even contact their own realtor and explain the situation so that they can get a valuation that is close to what they need.

P

[bangingmyhead]

An update from atty today--he advised us to sit tight(yeah)that he does not think trustee can take home for equity to distribute since husband and I both have individual debt, no joint except what we want to reaffirm. So we will wait til next week to see if he files suit. Does anyone know about equity and individual debt?

[petrified]

[SinkingFast]

I'm kinda surprised your attny hasn't pointed out "Costs to Sell".

Maybe you should call a couple of Realtors and get independent Market Analyses of your own. When the Realtors figure the value of a home, they also list out approximate costs to sell. And you're allowed, by The Code, to deduct reasonable costs to sell before your Homestead Exemption is applied.

If that Trustee is saying $11K equity without figuring costs to sell then that's just wrong. If you were to surrender your house to sell, the Trustee would have to pay costs to sell too.