3. Does the HELOC go as unsecured debt if the first mortgage is more than the current value of the home if I am not living in the home full-time but my daughter is? Do I need to put on paper how I came to the current market value of the homes for Schedule A? Because Zillow is overinflated, and I know what the foreclosures of my model are going for and my backyard is dead, the water system is broken and needs to be dug up and the front yard is dead (I haven’t gotten estimates less than 25k for both), also the furnace duct system needs work as it doesn’t blow a/c or heat to 2 of the bedrooms, it also needs new carpet, paint and a new garage door (I didn’t stop soon enough). The windows need cleaning, etc. If I put what Zillow or a Title Report says, then my first mortgage is less than that amount. If I put what it would really sell for, realistically, then that value is less than my 1st mortgage. I don’t want the Trustee to think I am trying to get away with something…and if he pays attention or listens to me, I did what all bk attnys and my accountant said was foolish, which was to pay off my credit cards (excuse me for paying my debts and being responsible…I couldn’t not pay for something I bought just to bankrupt it…I couldn’t live with myself).
State/Country relating to question: California
1) The HELOC is a secured loan - and goes on Schedule D - even though the first mortgage balance is more than the value of the house. In the last column of Schedule D (Unsecured Portion if any), you would enter the entire balance of the HELOC.2) No - you do not have to indicate how you arrived at the market value. If the trustee wants to know, he will ask you.3) It is very true that the prices on Zillow are unreliable. You have to enter the price the house can realistically be sold for, not necessarily what Zillow says.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).