Bankruptcy Appraisals

During bankruptcy proceedings you may be asked by the court or by your attorney to have a certified real estate appraiser complete an appraisal on the real estate property or properties you have listed in the bankruptcy filing.

It is critical that you have an accurate valuation of your home in order to make informed decisions about the type of bankruptcy filing and, more importantly, in order to protect your home during the bankruptcy proceedings.

In order to protect your home, you need to have an accurate estimation of value for your home. Once the value is determined, you would then deduct the mortgage balance from the value in order to determine the amount of equity in your home.

In many cases, if the equity is less than the amount of the homestead protection available, your house will likely be protected in bankruptcy. If the equity exceeds the available homestead protection, your house may be at risk in a Chapter 7 bankruptcy, so a Chapter 13 may be a better option.

In either case, you should seek the counsel of a licensed attorney. The information provided here is not to be construed as legal advice and is provided by the appraiser for illustration purposes only.

A full appraisal will give you the most accurate value for your property; far more accurate and defensible in court than an agent’s CMA report (Comparative Market Analysis report). And even if you recently refinanced your home or modified your loan, you might need a current appraisal. Depending on the real estate market, an appraisal that is more than two or three months old may not be considered recent.

To get a full appraisal, you need to hire a licensed certified real estate appraiser to inspect your property and prepare a report containing information on your home and information on sales of comparable homes.

Based on the appraiser’s analysis, he will set a value and provide an explanation for the valuation. An accurate and defensible appraisal report is critical to the outcome of a bankruptcy proceeding.

Significant errors in real estate valuation can create problems in your bankruptcy. If you assign a value to your home that is too low, you run the risk of a trustee objecting to your scheduled valuation. If you list a valuation that is too high, you may miss out on the availability of Chapter 7 or you may pay back more than is necessary in a Chapter 13 bankruptcy filing.

It is important to have an accurate and defensible appraisal report completed on your property. One that contains a thorough analysis of the data and a complete description of the methodology used to determine the valuation.

For the reasons outlined above, bankruptcy attorneys often recommend you work with an experienced certified real estate appraiser. Here at Triton Real Estate Advisors we understand the complexities involved in assessing the value of a property under these difficult circumstances and we work hard to provide you with the best possible experience. We excel in our professionalism and the prompt completion of your requests.

Give us a call today with any questions you might have. We would be happy to help you through this tenuous process.