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    CMA done by Lawyer

    Can one contest the CMA done by their lawyer? Is the client entitled to a copy of the CMA? What weight does the CMA hold with the trustee? Lawyer put in higher amount on my petition than their CMA (handled by lawyer). Also same houses are selling for much more in my development. If it's low, how would that work with a chapter 13?

    #2
    CMA has the same or, maybe, less weight than a BPO. A BPO has less weight than an appraisal. If you are questioning the value someone came up with using a CMA, get an appraisal.

    Des.

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      #3
      It all depends on whether or not the bank challenges your valuation. If they submit an appraisal, that trumps your CMA. On the flip side, if they don't challenge your value, it doesn't matter how you arrive at the value. Our motion for our lien strip just stated that the borrowers believe $XXX to be the value based on recent home sales in their area. There were ZERO professional opinions submitted, but the bank didn't challenge it, so the motion was automatically approved by the judge.

      As far as whether or not you are entitled to a copy of the CMA that the lawyer performed: only if you paid for it. If you didn't pay for it, then you are not entitled to a copy, but they may give you a copy if you request it.
      Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
      0% payback to unsecured creditors, 56 payments down, 4 to go....

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        #4
        My lawyer has told me (after they had me pay for a CMA) that the CMA doesn't matter as the trustee will order an appraisal as well as hire a realtor. Is that accurate? (What's the purpose of getting a CMA?) This is a chapter 7 asset case - I have non-dischargeable debt so I would like to be able to pay off as much of that as possible. The house has significant equity.

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          #5
          Originally posted by nohope View Post
          My lawyer has told me. . . that the CMA doesn't matter as the trustee will order an appraisal as well as hire a realtor. Is that accurate?. . . This is a chapter 7 asset case - I have non-dischargeable debt so I would like to be able to pay off as much of that as possible. The house has significant equity.
          You probably got a CMA just to have some idea as to value since you are an asset case. I assume the equity is in excess of any allowed exemption. As to the Trustee, he should get his own appraisal (and a Court appointed realtor). He has to market and sell the asset. He should not be relying upon the debtor's opinion of value (CMA or nor CMA).

          Des.

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            #6
            Thanks for your reply. I think the CMA is low - it doesn't compare my home to similar sales in my development. As I tried to explain before, I have non-dischargeable debt which I was first told would be paid off - well, it won't be if the house is sold for far less than the equity it has. Been told the CMA will be given to the trustee at the 341 meeting (which is tomorrow - I paid the lawyer for the CMA months ago - they waited until two weeks ago to have it done and didn't give me a copy of it until late Thursday). In NJ there is no homestead exemption - equity in home is substantial.

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              #7
              Originally posted by nohope View Post
              Thanks for your reply. I think the CMA is low - it doesn't compare my home to similar sales in my development. As I tried to explain before, I have non-dischargeable debt which I was first told would be paid off - well, it won't be if the house is sold for far less than the equity it has.
              The CMA really is meaningless. The only way to know for certain what a house is worth is to put it on the market and see what it sells for. It's in the trustee's interest to get the highest price possible because he gets a percentage of the proceeds. Of course, he'll balance price with thee need to sell the house in a reasonable amount of time.
              Last edited by LadyInTheRed; 04-03-2011, 10:50 AM.
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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                #8
                So how much would the trustee lose if the house is sold $100-200K below market value? Where can you find the percentage of his proceeds? Realtors in NJ get 6%.

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