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Home Apprasisal

When I filed for Bankruptcy in February of this year. I was asked to get a value of my home by either an Home apprasial or a Real Estate Agents letter indicating the Value. I decided to go with the Real Estate Agents letter(which was free), the Value came in at $320,000. The letter was accepted by the Trustee. In July of this year one of the creditors disputed the value of my property with my Trustee, therefore the Trustee decided to order a Home Appraisal on the property & the Value came in at $370,000. The Trustee indicated that they would have to use the New value for the Bankruptcy. I was NOT happy with this & expressed my concern to the Trustee, the Trustee told me to order my own Home appraisal, which I did & the Value came in at only $300,000, sent the Trustee a copy of Appraisal report. I waited until Oct this year to call the Trustee back to find out what they decided about the 2 Home appraisals done on my property. The Trustee told me that they would be going with the Higher Homer Appraisal. I told the Trustee there were too many descrepencys between the 2 Home Appraisal. Please Help, What Can I do Now?????

Posted from: Ontario

One Response to “Home Apprasisal”

A licensed trustee said...

This is not an uncomon problem – particularly in cities that have experienced large swings in real estate values.

If there is a disagreement between parties (you, your trustee and a creditor) then the issue will be put before the Court. The Court will decide what the value of your home for the purposes of the bankruptcy. Once the value has been established by the Court it becomes a simple exercise (math) to determine whether or not you have any equity that needs to be paid into the bankruptcy.

Given the difference between your appraisal and the creditors, you may want to consider hiring a lawyer to represent you in Court. It will cost you a few thousand dollars, but it may save you many more thousands in the long run…