Bankruptcy appraisal

[Bamba]

I know it's not my problem...report was sent with the market value my comps yielded...all sold within 3 months etc...I was just asking for myself as a future reference. Thank you all for your advice!

 

[Doug Meyer]

Bankruptcy court hearings are a snap. Last one I went to the opposing attorney asked me two questions. 1) did I inspect the house (yes). 2) did the client give me an estimated value (no). Dismissed he said and I counted my cash as I walked out the door. Total of 1.5 hours of driving/sitting time, 2 minutes on the stand.....

 

[Bamba]

well the client did tell me what he thinks it's worth...but my comps yielded a slight higher value though...will that get me in trouble? the fact that he volunteered what he thinks I mean...

 

[PropertyEconomics]

well the client did tell me what he thinks it's worth...but my comps yielded a slight higher value though...will that get me in trouble? the fact that he volunteered what he thinks I mean...

You cant stop an owner from telling you what they think their property is worth. The only thing you can do, it not let that indication influence you. It is interesting, in a court of law (at least in my part of the world) the only person allowed to testify as to the value of real estate other than an expert witness is a property owner.

Their doing so will only get you in trouble if you let it influence your decision and analysis process. If it does .. decline the assignment.

 

[Doug Meyer]

You cant stop an owner from telling you what they think their property is worth. The only thing you can do, it not let that indication influence you. It is interesting, in a court of law (at least in my part of the world) the only person allowed to testify as to the value of real estate other than an expert witness is a property owner.

Their doing so will only get you in trouble if you let it influence your decision and analysis process. If it does .. decline the assignment.

Exactly......

 

[Bamba]

it didn't influence my decision...honestly I thought he was really low...but after I start doing my research I was amazed to see that he wasn't that far off...

 

[KenRossman]

A few comments...

I recently got subpoenaed to appear at a deposition by the trustee after appraising the house for the owner (intended use - bankruptcy). I have done hundreds, maybe over a thousand bankruptcy appraisals over the years - this was the 1st time I was subpoenaed to testify by the trustee with a $50 witness fee, not as an expert (I have previously been called to depositions or trials a few times as an expert witness - paid by the client)...

Since that episode - a few weeks ago, I have begun to get bankruptcy clients to sign a retainer agreement up front that obligates them to pay me as an expert witness if I get subpoenaed.

Also, FWIW, I have noticed a significant uptick in bankruptcy appraisals over the last 6 months or so - anyone know if there was a change in the law or is it just a result of the crappy housing market/foreclosures etc.

I use SFREP's multi-purpose residential forms for bankruptcy appraisals.

 

[wickedness1]

Also, FWIW, I have noticed a significant uptick in bankruptcy appraisals over the last 6 months or so - anyone know if there was a change in the law or is it just a result of the crappy housing market/foreclosures etc.

No new laws that I'm aware of but if your local Bankruptcy Court got a new judge or new trustee then they might be requiring more of their debtors than their predecessor.

In Cleveland, we got a new Ch 13 trustee a few years back & he did things a lot (separated specifically for TC, lol) more rigid than our prior CH 13 Trustee.

 

[Mike Kennedy]

Be sure not to use "boilerplate" comments which include mortgage financing ......nor the Fannie Definition of Mortgage Value which is NOT relevant to the Intended Use of your report.

 

[Ann O'Rourke]

Be sure to get paid up front all cash for your appraisal. No checks, no credit cards, etc. An engagement letter is a good idea, definitely if you may have to testify, specifying your hourly rate and minimum fee and that you are to be paid in court with cash or cashiers check at the end of your testimony.

I have only appeared in bankruptcy court once. Just a judge, myself and the other appraiser, the attorneys, and the parties. It was a snap. The judge didn't put up with anything from the attorneys. No stupid questions, etc.