Central District Consumer Bankruptcy Attorney's Association

The Trustee is not bound by the appraisal, but I would still talk to the
clients about sending the appraisal to the Trustee and trying to negotiate
a settlement. You said "debtors," plural, so I assume it is a married
couple, eligible to claim a $100,000 exemption. If appraised value is
$400,000 and you assume 8% costs of sale, then there is around $9,000 in
nonexempt equity, even after 8% costs of sale ($400,000 - $100,000
exemption - $259,000 mortgage - $32,000 estimated costs of sale at 8% $9,000). So I would talk to clients about making an offer to the Trustee
to buy out the nonexempt equity. See if they can get $9,000 out of a
retirement account withdrawal or 401k loan, friends, family, etc....
Clifford Bordeaux
Bordeaux Law, P.C.
3731 Wilshire Boulevard, Suite 600
Los Angeles, CA 90010
T: 626-405-2345 / F: 626-628-1820 E: cliff@bordeauxlaw.com
On Tue, Feb 4, 2014 at 11:08 AM, Hale Andrew Antico wrote:
>
>
> I forget which bankruptcy judge said it, but I believe it was one in
> Santa Ana that said, "the best way to appraise the value of a house is to
> put a 'For Sale' sign in front of it." Trustees are keen to follow this
> line of thinking.
>
>
> ------------------------------
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *paloci66@yahoo.com
> *Sent:* Tuesday, February 04, 2014 10:54 AM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] Costs of sale re: Chapter 7 homestead
>
>
>
> Debtors filed a Ch7 case owing $259k in secured claims on their residence.
> At the 341(a) meeting Debtors were advised that their home was subject to
> sale. I was retained and obtained an appraisal: $400k.
>
>
> If costs of sale and trustee's fees and expenses are included, then there
> is no benefit to the estate to sell the Debtors' residence. But if only
> liens and homestead are considered, then Debtors may have a problem with a
> forced sale situation.
>
> I found old case law (Hyman, 967 F.2d 1316) that suggests that you do NOT
> count costs of sale in this context. But it is my experience in this
> district that, when it's close, a lot of us cite costs of sale on Schedule
> A when setting forth value of real property. Can anyone point me to case
> law or anything else I might be missing?
>
> Any help appreciated.
>
> Henry Paloci, Esq.
> 805.498.5500
>
>
>
The Trustee is not bound by the appraisal, but I would still talk to the clients about sending the appraisal to the Trustee and trying to negotiate a settlement. You said "debtors," plural, so I assume it is a married couple, eligible to claim a $100,000 exemption. If appraised value is $400,000 and you assume 8% costs of sale, then there is around $9,000 in nonexempt equity, even after 8% costs of sale ($400,000 - $100,000 exemption - $259,000 mortgage - $32,000 estimated costs of sale at 8% $9,000). So I would talk to clients about making an offer to the Trustee to buy out the nonexempt equity. See if they can get $9,000 out of a retirement account withdrawal or 401k loan, friends, family, etc....
Clifford BordeauxBordeaux Law, P.C.3731 Wilshire Boulevard, Suite 600Los Angeles, CA 90010T: 626-405-2345 / F: 626-628-1820 E: cliff@bordeauxlaw.com

The post was migrated from Yahoo.

I forget which bankruptcy judge said it, but I believe it was one in Santa
Ana that said, "the best way to appraise the value of a house is to put a
'For Sale' sign in front of it." Trustees are keen to follow this line of
thinking.
_____

The post was migrated from Yahoo.

The trustee can try and sell the property if so inclined regardless of your appraisal. If trustee believes the value is more than your appraisal orthat property value may increase then the trustee has every right to try tosell the property for the benefit of the estate. Either an offer is
obtained high enough to pay the secured creditors and homestead exemption after
costs of sale or the property will not be sold.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
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In a message dated 2/4/2014 10:54:31 A.M. Pacific Standard Time,
paloci66@yahoo.com writes:
Debtors filed a Ch7 case owing $259k in secured claims on their residence. At the 341(a) meeting Debtors were advised that their home was subject to sale. I was retained and obtained an appraisal: $400k.
If costs of sale and trustee's fees and expenses are included, then there is no benefit to the estate to sell the Debtors' residence. But if only
liens and homestead are considered, then Debtors may have a problem with aforced sale situation.
I found old case law (Hyman, 967 F.2d 1316) that suggests that you do NOT count costs of sale in this context. But it is my experience in this
district that, when it's close, a lot of us cite costs of sale on Schedule A when
setting forth value of real property. Can anyone point me to case law or anything else I might be missing?
Any help appreciated.
Henry Paloci, Esq.
805.498.5500
The trustee can try and sell the property if so inclined regardless of your
appraisal. If trustee believes the value is more than your appraisal
or that property value may increase then the trustee has every right to try to
sell the property for the benefit of the estate. Either an offer is
obtained high enough to pay the secured creditors and homestead exemption
after costs of sale or the property will not be sold.

Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile)NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY
THE INTENDED RECIPIENT OF THE TRANSMISSION, AND THIS COMMUNICATION IS INTENDED
TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE,
DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED.
PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE
THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.

In a message dated 2/4/2014 10:54:31 A.M. Pacific Standard Time,
paloci66@yahoo.com writes:


Debtors filed a Ch7 case owing $259k in secured claims on their residence.
At the 341(a) meeting Debtors were advised that their home was subject to sale. I was retained and obtained an appraisal: $400k.


If costs of sale and trustee's fees and expenses are included, then there
is no benefit to the estate to sell the Debtors' residence. But if only liens
and homestead are considered, then Debtors may have a problem with a forced
sale situation.

I found old case law (Hyman, 967 F.2d 1316) that suggests that you do NOT
count costs of sale in this context. But it is my experience in this district
that, when it's close, a lot of us cite costs of sale on Schedule A when setting forth value of real property. Can anyone point me to case law or anything else I might be missing?

Any help appreciated.

Henry Paloci, Esq.
805.498.5500

The post was migrated from Yahoo.

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The post was migrated from Yahoo.