How to prove value on home?

[questionsGA]

We are looking into filing Chapter 7. Our primary home will foreclose and we will keep our second home which costs a lot less to live in.

I'm sure the value of the second home is less than the mortgage since we purchased it 4 years ago with as little down as we could. How do I prove that? Does the Trustee automatically take off the percentage that home values fell within the state? Or do I have to hire an agent to do a BPO (Brokers Price Opinion). (This is different than a CMA. A BPO general comes out much less and is what the lenders use, whereas a CMA is a hopeful sale price.)

If your answer is to have a BPO done, how many days should it be done before Filing? Is within 30 days ok ... or closer to filing date?

Thank you for your help.

[justbroke]

I'm sure the value of the second home is less than the mortgage since we purchased it 4 years ago with as little down as we could. How do I prove that?

I would venture to guess that your first problem is going to be whether the second home is your homestead. If you're not living in it, this could get interesting.

As for proving value, you get an appraisal around the time you file.

Does the Trustee automatically take off the percentage that home values fell within the state? Or do I have to hire an agent to do a BPO (Brokers Price Opinion). (This is different than a CMA. A BPO general comes out much less and is what the lenders use, whereas a CMA is a hopeful sale price.)

Trustee's are strange creatures and I don't know where some of them come up with values. A professional appraisal performed by a person who physically inspects the interior and exterior and uses one or more methods for determining the value, is what is best.

I would venture to guess that if the prices are depressed in the area, the Trustee may not ask for an appraisal.

You could start with a Comparative Market Analysis (CMA) to see what a Realtor thinks about the prices. If it's way off from what you think it should be, then get a full appraisal.

[whipster1]

In my area the trustees look at the county tax appraisal number. If you think it should be lower, then you have to supply proof.

[StartingOver08]

Don't use the tax assessors number (I don't know where you are whipster1), but here the tax assessors number is high by at least 15% - which is huge.

Also for the OP, a BPO and a CMA are supposed to come out with the same or similar figures because the closed comparable sales are the same data! If the CMA is coming out higher, then get a realtor that understands how to complete a proper CMA. The CMA's are free. The BPO's generally cost - but it is a nominal price. (I'm a Realtor and have been for 30 years. I used a CMA for my Trustee with no issues whatsoever).

[frogger]

In our area, they use the assessed tax value.

[questionsGA]

Message to the Real Estate agent

Hi,

Hope I didn't insult you by saying the CMA's aren't that accurate. In all fairness, it was really my broker who didn't want the agents to take the proper time. I know many agents do a good conscientious job of it. Like any profession, you have people who do a good job, and people who just get by.

Thanks.