Passed means test but house value too high by 30k

[nednj36]

My spouse refuses to opt for Chapter 13 because most of debt is mine. I became unemployed since the first consultation with attorney. Our Zillow value came in at 290K due to recent high sales/comps. Attorney says we need to be at $260K for this to work. Will my recent job loss offset the fact that we have 30K excess equity in house? Again, Chapter 7 is our only option

[justbroke]

I can't answer this question because I don't know why the attorney wants your home to be less than $260K. I can speculate and say that is because there are not enough bankruptcy exemptions to protect any sizable amount of equity in the property. I would not trust a Zillow value if my life depended on it. I would trust either a comparitive market analysis (CMA) from a respectable real estate representative, or an actual appraisal performed by an appraiser licensed to perform such appraisals in your State.

[nednj36]

Thanks for info/feedback. House needs 30K repairs. Agree Zillow inaccurate most of time. Getting full appraisal tomorrow which should bring value and equity where it needs to be. Attorney seems pretty confident even without appraisal. Thanks again

[keepsmiling]

POSSIBLY the tt will try to negotiate a buyback from you for any excess equity (real or imaginary). Be prepared for that.

[nednj36]

What do you mean TT and Buyback mean (real or imaginary)? Sorry. New at this

[Pandora]

make sure you know the difference between a BPO and a CMA; BPO is just going to essentially be the same thing as Zillow, Trulia, etc...comps. May be coming in the same ball park as online sites.

Think we paid around $400/$500 for our CMA with complete walk-through of house and property if I remember correctly.

[LadyInTheRed]

make sure you know the difference between a BPO and a CMA; BPO is just going to essentially be the same thing as Zillow, Trulia, etc...comps. May be coming in the same ball park as online sites.

Think we paid around $400/$500 for our CMA with complete walk-through of house and property if I remember correctly.

I think you are confused, Pandora. Maybe you are just confusing your acronyms. A CMA is a Comparative Market Analysis done by a real estate broker/agent. It is basically the same thing as a BPO. My understanding is that the main difference is that a CMA is done in anticipation of putting the property on the market and a BPO is done in connection with a loan. The terms are often used interchangeably. CMAs and BPOs are both better than Zillow, because somebody with experience in the local market compares recent sales in your area and makes adjustments for differences between your home and the recenlty sold homes to come up with an estimate of what the home will actually sell for. Zillow can't distinguish many things that may make one home preferable to others besides square footage and how many BRs and BAs there are. A CMA is usually free, but if you are charged for it, it will not be expensive. You may have to pay for a BPO, but it wont cost $400/$500. That is the cost of full appraisal done by a certified appraiser.

[Pandora]

I think you are confused, Pandora. Maybe you are just confusing your acronyms.

ugh - Where the hell was my brain on that day? You're right... actually I left out the actual appraisal vs. the other 2...yup.

Different things those 3 things. Now you got me singing that damn song from childhood "which of these things are not like the other?" LOL

Thanks for keeping me straight Lady... ;)