Worst Case Scenario

[anonymuse]

Let's say I file Ch 7 wanting to keep my house and the trustee comes and says that she feels my house has non-exempt value.

Next, would come a valuation hearing.

If I lost, what would happen then?

Would my case be:

1) dismissed?
2) automatically converted to a Ch 13?
3) the trustee would take my house?

[invest1choice]

anonymuse,

My thought would be the trustee would take your house for the equity and divide it to your creditors..

[Bobby'sGirl]

Did you have a realtor look at your place or use comps and tax assessments in deciding your value? I went into my first attorney meeting assuming I would have too much non-exempt equity to keep my house based on an old valuation from 2 years ago for my mortgage refinance and some on-line comps provided by a realtor. He had me list all the defects I would have to disclose on selling the house, pointed out my exemption plus 10% estimate for court to sell the property = not much extra. He said locally for less than $4 or $5 thousand the court and our trustees won't bother taking it. The court may choose to send through the local broker they use for market evalutions, but they don't like selling "as is" and will probably be even lower than my estimate. To ease your mind figure out the most you could do as a 3 year repayment plan on a 13, or if the court sold your condo, what housing you could get using your exemption $ from the sale they have to give you. Having explored your favored solutions will at least make you feel there is an alternative path to follow if necessary. And keep posting for us to give you some "poor baby" messages, too, as your back is healing!

[anonymuse]

A realtor has pulled comps galore for me. The catch---very little has sold in the last 6 months, then we had to go back 12, and even 18 months. Some people are trying to sell higher and they've been on the market forever (even up to a year.)

I'm a person that is very scientific and deals with facts and figures and gray areas and estimates drive me nuts. Valuing a home is more art than science--I can't just plug in a bunch of numbers into a formula and take the cube root of the inverse of the log of the hypotenuse.

I've been working with this one realtor via email for home valuation and they have been very helpful. I'm going to ask if they'll do a drive by for a quick sale. I also have a "friend" and a "friend of my father" that are realtors. (Yes, dad is the only one in the family that has an inkling of what I'm doing.) Might explain the situation to them also and hit them up for an evaluation. Two opinions are better than one and then I could average if need be.

I just want to get this stuff in quickly before some turkey buys a new townhome for too much money and screws with my figures.

[KAB]

Hi anonymuse,

I had the same worries about my house as you have. My attorney told me that if something happened and the trustee questioned the value of my home and if the trustee values my home higher than I did; we would be able to convert to a 13.

In the end, I had asked a realtor to pull comps. At the 341 meeting, I showed the trustee a comp of a home (similar to mine) that sold for the value I listed my home for and the trustee had no problems with it.

I hope this helps.....good luck!!!!

[scammer]

What would happen

MY favorite THINGIE!!!!!


A MOTION OF COMPROMISE, god I love those, the old lets make a deal. Throw a few other goodies in there when your in the negot that you want too.