How does the trustee value the 1st mortgage?

[davetedge]

I am wondering how the trustee values the mortgage debt in a Ch7. Is it the principal or the balance on the statement with all the missed payments and add-ons?

The reason I'm asking is that I'm in a gray zone:

Principal on 1st mortgage: 550,000
Total owed to bank: 700,000 (and growing)
Approx. quicksale value of property: 570,000

There's also 2nd and 3rd liens of about 100,000.

So at what quicksale value might the trustee decide to go ahead with an asset sale?

In NY, the trustees are still reeling from substantially higher exemptions. I wouldn't be surprised if carve-outs start to happen here, although I haven't heard anything along those lines just yet.

[keepsmiling]

An atty here in NJ mentioned the number 10K to me - as in, if that amount can't be realized after exemptions, mortgage, broker fees etc-- they were unlikely to bother.
That was about a year ago.

Of course that' s not NY, and doesn't take this carve out carp into account. Let us hope that west coast craze does NOT move east.

Seems to me the amount owed is the amount owed, regardless of allocation. Anything else would be a short sale.

[btbeme]

You owe the amount listed on the statement.

I cannot imagine a Trustee being able to discount a mortgage statement in this economy. Not with a straight face, anyway...