Stripping Liens in Chapter 13 Bankruptcy and Home Appraisals
In the middle district of Florida, it is becoming more prevalent that debtors must submit a formal appraisal with the motion to strip in order to have the 2nd lien stripped from the property.
As mentioned in recent posts, if the value of the home is worth more than the 1st lien on the property, it is highly unlikely that the debtor will be able to receive the benefit of the strip. Furthermore, a strip will only become effective if the debtor makes all payments and successfully completes the plan.
The middle district of Florida, for the most part, is not accepting property tax appraisals and home valued sites such as Zillow.com and Trulia.
In some instances, it may be acceptable to use these resources but I always tell my clients to prepare hiring an appraiser for a formal appraisal.
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Greg Gilbert
Keith Maynard
