How exactly is home equity calculated ?
June 25th, 2006 by Questions
I read on this blog some time ago that the selling costs and legal fees are subtracted from my home equity. That makes sense to me as the home will eventually be sold, sooner or later. If the creditors take it over, they will also have to sell it.
But recently I\’ve spoken to two trustees in Edmonton about it and both gave me unclear answers suggesting that it is subject to negotiations with creditors and I will be lucky if half of the selling costs will be considered when calculating my home equity.
It is important because it means many thousands of $ that I will have to pay over the home equity or I loose the house. Selling costs start from around $10,000 and up.
So how exactly is home equity calculated ?