Value of Home

[PyroGuy]

I am pretty sure I owe more on my home than it's worth right now (I am a former real estate agent)....but it's close, within maybe $6K.

Am I going to have to get a certified appraisal done to confirm this?? Or, is there another way the courts will varify the value?

Thanks for all the info!

[SMinGA]

If you are trying to show the 1st is upside down in order to strip a 2nd, and its close, you may want a valid appraisal. If you're just trying to show that the current equity is within your homestead exemption, I don't think you'll need much documentation unless your state has a very small homestead exemption.

Edited to add:

I see you're in FL. I believe FL residents are able to use an additional personal property wildcard if they are not using the homestead exemption. And FL's normal personal property exemptions are pretty stingy. So if you have no equity and need to protect other items (cash, vehicle equity, etc.) then being able to prove your home is upside down could be in your favor.

[NoTomatoCan]

I am in a similar situation. Appraisal came in $6k below what we owe on the first. We did get a nice pre filing gift though... Our tax assessment came in $10k below what we owe on our first!

If you do need to get an appraisal, get it as close to your filing date as possible. The value as of your filing date is what matters.

[wannaknow]

I had to get an appraisal to strip the 2nd mortgages. It was required and the only way to get it done.

[LadyInTheRed]

My attorney said we can use free online valuation sources and my assessed value (the county lowered assessed values across the board last year). But, I'm a lot more than $6,000 underwater on the first. Your attorney will know what is required in your district and by your situation.

[PyroGuy]

All online services (Zillow and places like that) have an inflated value on my home....and as for the county appraiser....they were late in increasing my value during the boom, and of course late decreasing it now.

Being that I am a former real estate agent, and the exact home with pool directly behind me is selling for less than what I owe....I know the value, but I just need to make sure the courts do also!

[justbroke]

I see you're in FL. I believe FL residents are able to use an additional personal property wildcard if they are not using the homestead exemption. And FL's normal personal property exemptions are pretty stingy. So if you have no equity and need to protect other items (cash, vehicle equity, etc.) then being able to prove your home is upside down could be in your favor.

This is not accurate for Florida. The Florida statute reads "receives the benefit of". This has been interpreted by the Florida courts to mean that if you don't otherwise surrender the property, you do "receive the benefit of" the homestead exemption, even if there is no equity in the property.

In Florida, the only way to get the $4,000 "unused homestead exemption" (Florida Statute 222.25(4) is to have no primary residence or surrender the property.

[PyroGuy]

This is not accurate for Florida. The Florida statute reads "receives the benefit of". This has been interpreted by the Florida courts to mean that if you don't otherwise surrender the property, you do "receive the benefit of" the homestead exemption, even if there is no equity in the property.

In Florida, the only way to get the $4,000 "unused homestead exemption" (Florida Statute 222.25(4) is to have no primary residence or surrender the property.

sooooo, what does that mean exactly? You guys got me confused. if my 1st mortgage is about $148K and my value is approx $143K....am I still able to strip 2nd and 3rd??

[justbroke]

sooooo, what does that mean exactly? You guys got me confused. if my 1st mortgage is about $148K and my value is approx $143K....am I still able to strip 2nd and 3rd??

If you are keeping your home, you can't get the extra $4K in homestead exemptions. That means that you'll only have $1K to exempt personal property in Florida.

As for stripping, since you're filing a Chapter 13, you should be able to strip the 2nd and 3rd. If you are going to do a lien strip, I would get a full residential appraisal. Based on the value of your home, it shouldn't cost more than $249 to have the home appraised. I will caveat though, that you want to appraisal as close to filing as possible.