Question about home equity

[pookieny]

Does the BK court go by what it's assessment is or market value? My lawyer says that I need the property tax forms and I notice that they have the assessment at $72,400-which means I'm well under the state exemption but it also has full market value listed which is $81,000 and brings it $1000 above my state exemption. I could never sell it at the higher price, anyways.

[StartingOver08]

Fair Market Value of Property

Equity is the difference between what you owe the mortgage company and what the actual Fair Market Value of the property is in TODAY's market. If you have no mortgage, then your equity is the Fair Market Value (FMV).

Tax assessed values are not Fair Market Values - they are issued by the tax assessors office to determine the taxable amount of the property. In many districts today the tax assessed value is substantially higher than Fair Market Value.

To get current Fair Market Value, you can have a realtor provide a CMA using CLOSED comparable sales within the last 90 days. This is usually free. They will provide it to you in writing to provide to the Trustee.

Or you can pay for an appraisal from a local appraiser.

[pookieny]

thanks

[HHM]

Equity is the difference between what you owe the mortgage company and what the actual Fair Market Value of the property is in TODAY's market. If you have no mortgage, then your equity is the Fair Market Value (FMV).

Tax assessed values are not Fair Market Values - they are issued by the tax assessors office to determine the taxable amount of the property. In many districts today the tax assessed value is substantially higher than Fair Market Value.

To get current Fair Market Value, you can have a realtor provide a CMA using CLOSED comparable sales within the last 90 days. This is usually free. They will provide it to you in writing to provide to the Trustee.

Or you can pay for an appraisal from a local appraiser.

Good summary.

[pookieny]

>To get current Fair Market Value, you can have a realtor provide a CMA using CLOSED comparable sales within the last 90 days. This is usually free. They will provide it to you in writing to provide to the Trustee.

How do you get a realtor to provide this, if you are not in the market to buy or sell property? Or do I tell them I am in the market to sell?

[StartingOver08]

You can tell the realtor that you are exploring your options to sell or not.

Make sure you tell them you are looking for the Fair Market Value to get the home sold within 30 to 60 days. Ask to see the actual comparable sold properties they are using for your value. The sold properties need to be very, very similar to your home to be accurate.

There is no obligation for you to sign ANYTHING - this information is free.