they wouldn't want us to sell would they?

[Migal]

I'm filing single, though I am married. The sev on our house is 57000. So the state of MI values our home at 114,000. We owe 97 with a first and second. The trustee wouldn't really make us sell for that little of equity would they?

[StartingOver08]

Migal, what is "sev?"

What do you mean the State of MI values your house at $114k? Do you mean tax assessed market value? If so, that tax assessed value has nothing to do with actual market value. In order to determine the REAL market value you can get an appraisal or you can start out by getting a CMA. The appraisal will cost you money up front, but certainly save money in the long run. The CMA is free. Make sure you get an experienced Realtor to provide an accurate CMA. Use sold comparable properties within the last 90 days.

Did you check your exemptions in MI for your homestead? Are you planning to keep your homestead? You are most likely upside down now if you in fact used the property tax value as a market value. That is not a bad thing when you are filing BK.

[Migal]

yes, we are definitely want to stay here. My husband pays the mortgage and we're not late, always on time.

[Migal]

wondering if anyone else would offer an opinion?

[justbroke]

Well, StartingOver has asked you the appropriate questions in this case and I really have nothing to add to that. We can't provide any answers until we know what StartingOver has asked.

[Migal]

I believe we would use the Federal exemptions so the homestead exemption is 20,200.

[justbroke]

Here are Startingover's questions again in one post...

1. What do you mean the State of MI values your house at $114k?
2. Do you mean tax assessed market value?
3. If so, that tax assessed value has nothing to do with actual market value. In order to determine the REAL market value you can get an appraisal or you can start out by getting a CMA.
4. Did you check your exemptions in MI for your homestead? Are you planning to keep your homestead?

[Migal]

yes, 57000 is the SEV, state equalized value. So that would put the value at 114,000. as per the state.

That's what we were told they use in MI.

[justbroke]

yes, 57000 is the SEV, state equalized value. So that would put the value at 114,000. as per the state.

That's what we were told they use in MI.

Okay, so I don't know where the information about them using the state equalized value in Michigan, but that is not an appraised value. It's used for determination of property taxes, but is not the home's true value. It is an "assessment" value used for taxation, and I never trust these numbers.

As StartingOver wrote, I would get a CMA -- competitive market analysis -- from a Realtor to see what the true value is. I believe the SEV is only used if you don't have an appraisal/CMA. I don't believe the SEV is the true value, but if you don't have an appraisal, that's "they" -- your attorney -- will use the SEV.

(For those reading, Michigan uses the SEV which is the State Equalized Value (SEV). It's intended to be 50% of the (assessed) cash-value of the home. It is used for taxation. It's the strangest way to do this, but I'm sure Michigan had a good reason to do so.)

[StartingOver08]

Exactly! Why would you trust the figures from the State? It is much more accurate to get an actual FMV (fair market value) based on recent comparable sales in your neighborhood. Remember, the goal is to keep your home and not put it at risk by attributing too much (non existent) equity to your home. It is in YOUR best interest to have real market value determined by a professional.

It is in the State's best interest to have an inflated value. BTW, we do not have anything like SEV here in FL, that is why I asked you what it was!

[Migal]

okay, thanks! I'll make sure and ask the attorney when we should have the appraisal done. We'll be filing by the end of the year, so I'm assuming it won't change much in that amount of time.

[StartingOver08]

Get the appraisal as close to the filing date as possible. The market is a funny thing - that's why I suggest a CMA to start (because they are free and you then have a pretty good idea of where the appraisal value will be - if you use a good agent).

[OhioFiler]

The TT doesn't make you sell. The TT takes the asset if it's available for distribution to creditors.

[justbroke]

The TT doesn't make you sell. The TT takes the asset if it's available for distribution to creditors.

Well, the Tee will ask you to "purchase" it before taking it to sell. The Tee does not actually want to be in the business of selling property. They will usually negotiate a lower amount if the Debtor will just "buy" it from the Tee.