How would they handle supposed equity in home??

[lalap123]

Okay, we know we have equity in our home. The tax value and Zillow value are definitely more than what we could sell it for in a short time frame, especially when you take into account new carpet, paint and minor repairs. We definitely want to try to keep it (I'm only one filing and need to do ch 7).

Hypothetically, does the trustee look at a value of his own making (whether he wants to use the tax value or get his own appraisal), and then say "I can either make you sell it and let's see what we get or you have to give me the excess equity based on MY estimated market value."? Or, say he doesn't want to sell it b/c hypothetically we'd only have say $15K left in equity after taking into account the estimated value and other fees and he doesn't think it's worth it, would he still make us give him the equity?

Not that they care, but I don't see how it's fair for him to say "I could have sold your house for X amount, which would have left you with X amount of equity, so pay me that." For all he knows, it could have sat on the market for a year and still not sold.

Anyone know how this works? If we know we'll have equity left then should we absolutely anticipate him forcing us into a sale? If it's all or none then it really changes my mind about doing a ch 7, but then again I know there's no way we can pay any extra at the end of the month in a ch 13

[TEW]

You have to give the trustee the value of your assets. He isn't going to guess. Don't use Zillow. Have a realtor give you fair market value or a certified appraiser. If you have any equity in the house then you see if it’s covered by an exemption

[lalap123]

I still don't understand...

I'm planning on getting a certified appraisal, but my understanding is that the trustee can and will decide for himself how much he thinks he can get for my house. If that's the case but he still decides NOT to force us into a sale, will he require me to pay the supposed equity that would be available after he calculates what he thinks will be left based on a hypothetical sale? Does that make sense at all? The only other alternative would be that he just lets us keep the house and not pay anything at all.

[TEW]

I'm planning on getting a certified appraisal, but my understanding is that the trustee can and will decide for himself how much he thinks he can get for my house. If that's the case but he still decides NOT to force us into a sale, will he require me to pay the supposed equity that would be available after he calculates what he thinks will be left based on a hypothetical sale? Does that make sense at all? The only other alternative would be that he just lets us keep the house and not pay anything at all.

No it doesn't make seance.

[StartingOver08]

If you are getting a certified appraisal - the Trustee is not going to argue with the appraiser over a valid value.

I think you are anticipating too much equity. The market is in bad shape now. Market value changes with the market. Get your certified appraisal and you will see.