appraiser for bank coming tomorrow...should i....

[itlm062]

Hi guys, I am in chapter 13, and had my 341 two weeks ago, like everyone else, I was super nervous but after reading some experience on the forum, I was well prepared. We had all the paper work, DL / SSN in hand, cashier checks ready and it only lasted 5 minutes! We originally were #3 on the list, but the first didn’t show, and the second’s lawyer didn’t show, so we were pushed to first : ) the only question that trip me up was when the trustee ask when I want to schedule my payments…had no idea I had a choice of date.

I just made my 2nd payment to the trustee. However, my 2nd mortgage which is with PNC is objecting to the lien strip. I got an appraisal in june for 700k flat, while the first mortgage at filing is about 710k. PNC is sending over their own appraiser over tomorrow because they did a “broker opinion” last month and it valued the house at 820k.

Can I mention to the appraiser what this is about, do they even care? I looked up some recent sold comps, and it can really swing either way…as of the filing date, the house was about 738k on Zillow…

[kjrmom911]

I don't have any experience in this, but just wanted to say good luck. I was lucky enough to not have any challenge from 2nd mortgage on the value. I woudnt say anything about the reason;.

[itlm062]

he just left...i chatted him up a bit, but didn't say much.

haven't check wtih my atty yet, but if the 2nd is gonna stick and i have to pay for it, i might as well just do a chapter 7?
(since the payment to 2nd will deplete all my disposable income at $552 / month)

[keepsmiling]

There is always the option of a settlement after a 7 with the second. Don't give up yet.
See where this winds up first.
Remember, the house would have to be priced for a quick sale.

[itlm062]

the bank's appraisal came back at $713k, and their lawyer offered us to settle the $127k 2nd for $30k at 6.5%.

looking at how much i owed on the 1st around filing date, with all the late fees, interest, it was at $716k total.
(but the "principle" amount is at $701k only)

should i even bother to settle?

thanks.

[LadyInTheRed]

I am pretty sure that the pre-petition late fees and interest are part of the loan balance. What does your Schedule D and lien strip petition say the balance of the 1st was? What does your attorney advise?

[shark66]

I would not settle.

The numbers are *way* too close. Where I am (not in your state) it would end up in front of the judge who would have the final say.

Remember that the appraisal has to be for a quick sale...not for a listing that's going to sit on Zillow for three years...

My $0.02 only...

Good luck to us all.

[momofthree]

I am pretty sure that the pre-petition late fees and interest are part of the loan balance. What does your Schedule D and lien strip petition say the balance of the 1st was? What does your attorney advise?

Ditto this. If your BALANCE (total amount that you owe) on your first was $716k at time of filing and the appraisal came in at $713k, then you can do a strip. It doesn't go by principal balance, it uses the actual balance or the payoff amount. Your attorney should fight this for you.

[itlm062]

i think on the petition, it only had the 701k as principle balance. i have since forwarded my atty the correct amount as of the filing date.
hope that won't screw anything up.

oh and the atty "strongly encourage" me to declined the offer.
thou they had to present it to me due to legal requirements.

[LadyInTheRed]

Take your attorney's advice.

[itlm062]

my atty just asked if it's ok to offer $2500 to settle. I'd be glad to just so we can move forward...

[DebtEnder]

2500 probably be worth it to avoid additional legal fees and the time and hassle of more court time and the risk, however slight, that it might not go your way. 30k offer they can shove where the sun don't shine.

[keepsmiling]

AWESOME.
Good for you!

[itlm062]

good news guys, my atty just told me PNC is no longer fighting the 2nd as a secured loan!

thou i do have to finish the chapter 13 plan payment, but once i do, it'll be cleared!

thanks for all the help!

[justbroke]

When it is that close it is silly for them to fight. They'd end up losing thousands in attorney fees. They are better off just getting what they can as an unsecured creditor.

Best of luck to you!