H is for home value, in the Alphabet Game, bankruptcy experts across the country blog on different topics.
I always ask potential clients this question, how much is your home worth?, I mean, really, and the response frequently is something like: well, it is worth $200,000, but right now, I can only get maybe $160,000 for it.”
So, what do we mean by “worth”?
There are state tax valuations, which are normally not worth the paper they are written on, and worth even less these days.
How about that last bank appraisal?
The one you did for the re-finance back in 2008 or earlier?
Uh, no good.
Most appraisals during those peak bubble years were bogus, done to hit a number that would allow the mortgage to go through and the mortgage broker to take a commission.
What I mean is, what would a willing buyer pay, right now, as is, no painting or other fix up. Your best guess as to the actual market price, usually based on sales of similar homes close by. Almost everyone I talk to has a foreclosed home, or more than one, for sale nearby.
If your neighbor’s house is basically the same as yours, maybe a little better, and is for sale for $150,000, that means, it is worth less than that, or someone would have purchased it at that price. So, your home is also worth less than that.
Doug wrote aboutthis week, and I recommend everyone do this.
If you are in a home now worth less than what is owed, and have trouble making the payments, you need to figure out the answer to our question: How much is your home worth?
Most of us, due to wishful thinking, I suppose,.
Get a free estimate from a local realtor, but, get a good answer on the value.
Don’t assume prices are going to rebound soon, either.
I have seen estimates of another 20% decline in home prices over the next year.
You cannot do intelligent financial planning without knowing stuff like this.
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OTHER LETTER “H” TOPICS:
Hearing Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
Bankruptcy Hijacking Los Angeles attorney Christine Wilton
Homeowner’s Association Dues Marin County Bankruptcy Attorney, Catherine Eranthe
Household New York Bankruptcy Lawyer, Jay S. Fleischman
Northern California Bankruptcy Lawyer, Cathy Moran
Homestead Colorado Springs Bankruptcy Lawyer Bob Doig
House Los Angeles Bankruptcy Attorney, Mark J. Markus
Household Size Hilo Bankruptcy Attorney, Stuart T. Ing
Honesty Cleveland Area Bankruptcy Lawyer, Bill Balena
Honesty (and Fraud Avoidance) Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
Harassment by Creditors Downriver, Michigan Bankruptcy Attorney, Christopher McAvoy
Livonia MI bankruptcy attorney