How does a trustee determine the value of your home?

[ken7carol]

If it is fair market value, how does he/she determine the value of your home? For example, let's say I want to keep my home in Chapter 7 bankruptcy . . I think the home for example is worth $215,000- but I owe $214,000- what if the trustee thinks the home is worth $235,000?? If the first $40,000 of the home is exempt, what would I have left over to count toward other exemptions?

Sorry if this is confusing.
Thanks!

[hamburgervol]

What would it auction for and what is the tax appraised value? I was told by my attorney to bring the deed of trust with me to my 341. I believe it contains the tax appraisal value and what is owed.

[ken7carol]

It appraised for $215,000 six years ago and two years ago it appraised for $260,000 for a home equity loan. The PVA value is approximately $100,000 . . . big difference. I'm just hoping that I won't have any equity because all of my cars are paid for. Again, I owe $214,000. I haven't filed yet but I probably will soon. I'm just trying to figure it all out and see where I stand.

Thanks for replying.

[Chowder]

My attorney said our Trustee will check Zillow.

In my area Zillow value is very close.

[lrprn]

You do *NOT* want to use your community's tax appraisal to value your home. It's well worth paying $200-300 for a professional appraisal. In many areas of the country, home values have plummeted over the last two years. A six-year-old and even a two-year-old estimate of value is worthless, especially if the "appraisal" was done to qualify for a second mortgage.

If the equity in your home is in question, get a qualified appraisal done. The trustee is far less likely to fight that.

[justplaintired]

We are taking our most recent property tax assessment with us. That is what our attorney wanted. Our appraisal was from 05 or 06, and things are different now, so last years assessment it probably more accurate.

Most like your appraisal will be won't work since the housing market took a dump since you had that done.

[StartingOver08]

The TAX ASSESSED VALUE is not the right value. Of course the Trustee wants to use that value - it is higher than the actual market value in many parts of the country! Remember the tax budget is calculated using the tax assessed value and the millage rate. The municpalities keep the valuation high as possible so the budget is not affected as much. They are very reluctant to drop the tax assessed value to current market value.

The best valuation is a true appraisal by an appraiser within no more than 90 days of the filing date. The closer to the BK filing date the better for you as the market is still dropping.

The next best valuation is a CMA (Comparative Market Value) by a professional Realtor. These are free. Again, the sales must occur within the last 90 days.

The Trustee accepts professional appraisals and CMA's in most districts. Why wouldn't they accept a professional evaluation? That's exactly what they are going to do if they have to determine value after they decide they want your house.

[justplaintired]

In our case (Indiana), our property tax assessment is very close to be right. Especially now, it actually puts us almost even on the house and what we owe. Either way this is the paper the trustee wants, so that's what they are getting. I don't think I want to argue with our trustee, if she ask for something, she's getting exactly that.

If you have a recent appraisal, then by all means use it. Our was too old. A CMA or what we call a realtor drive by, is also ok.

I guess it just depends on where you live, in Indiana our property assessments are fairly recent, so maybe that's why they are using those. I only know that's what was asked for here and my 341 is tomorrow, so that's what they are getting.

Good luck

[BKorbust]

Get a professinal appraisal they are well worth it. The asessor values my house at 420K. Fair market value from both a CMA and a full blown appraisal is 340K. Big difference. Asessor value = no lien strip. Fair market value = lien strip for me...

[miozelous]

Do not use property tax value for your house. My husband and I went to conest our taxes. We had hurricaine Ike hit us last year and had alot of damage. The county would not decrease our assesment on our house. They based our home value on sales of simialr homes from last year. My neighbor sold right before along with 3 other homes in the neighbor hood for record high prices for my area. All other homes that have sold this year were for 70,000 to 100,000 less! Believe me I am protesting next year!!

[jb300]

I don't see how the TT could argue with a professional appraisal.

[justplaintired]

I don't see how the TT could argue with a professional appraisal.

I don't believe they really can. I think if you are worried because you have too much equity and they may take the house, the appraisal is very important. If you're planning on keeping your home, then the appraisal can be very helpful if you state doesn't allow much in equity. Indiana allows $15,000 for instance. No matter what kind of property value we use, we know we don't have that much equity anymore. At one time we did, but houses in our area aren't selling for as much anymore. Maybe that's why a property assessment is fine in our case. I think the best advice to anyone, when in doubt talk to your attorney and find out what the trustee from your state will consider the right property value.

[LuciluS]

I'm with justplaintired on this one. Call your Attorney's office. Most likely someone besides your Attorney (as they know are hard to reach) in his office will know what the Trustee accepts.

I dang sure wouldn't spend any money for an Appraisal until the Trustee asks for one. Just my opinion.

[frogger]

In our area of Georgia, they use the value as assigned by the county. The county is normally pretty close to actual value.

[OhioFiler]

In our area of Georgia, they use the value as assigned by the county. The county is normally pretty close to actual value.

Unless the county is updating these values monthly they aren't even close to fair market value. The only reason to use the county valuation is if it is lower than real market value and you can fairly well argue it in court if necessary.

I would even be willing to argue against a TT who insists on using assessed value by providing a CMA or actual appraisal.