What is the purpose of an appraiser reappraising the house while the homeowner is in the process of filing bankruptcy?
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What is the purpose of an appraiser reappraising the house while the homeowner is in the process of filing bankruptcy?
Does this indicate a forclosure proceeding?
Asked on November 10, 2011 under Bankruptcy Law, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The only way to know for certain the purpose of the re-appraisal is to speak with the appraiser or his/her client (presumably, the bank).
Your guess is a good one: it is very likely that the bank is contemplating foreclosure and wants to assess the value. Remember: without getting into details, bankruptcy does NOT prevent a bank from foreclosing if the mortage is not paid. It will stop or stay foreclosure for a time, and it may give the homeowner leverage to negotiate a modification or some other assistance; it also will protect the homeowner from a deficiency judgment for an unpaid balance; but ultimately, if the mortgate is not paid, the bank will be able to foreclose.
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