BPO and Riverside Bankruptcy Trustee Howard Grobstein
Part of the job of a Chapter 7 Trustee is to make an independent valuation on the debtor’s real and personal property. As noted in previous post (August 22, 2013 Howard Grobstein and Private Party Valuations), Bankruptcy Trustee Howard Grobstein uses the Kelley Blue Book valuations as a starting point in valuing autos.
As a starting point for valuing real property (i.e. a house or land) Mr. Grobstein asks a real estate agent for a Broker’s Opinion of Value. This is known as a “BOV”. During Mr. Grobstein’s hearings, you will hear the Trustee say, “I have ordered a “BOV” on the property and I am waiting to hear from the broker”. What this means is that the Trustee has asked a real estate professional to give to the trustee an opinion of the value of the real property. This does not means the trustee is going to sell the property or that the Debtor has to turn over the property, but it it does mean that it looks like a property that may be valuable enough to seek further information.
When the Trustee says he ordered a “BOV” it also does not mean that the debtor has to pay for such an opinion or have to do anything. The real estate professional will examine “comparable sales” of similar properties in the area and then make an opinion as to the value of the property in question and give that opinion directly to the trustee.
Before a case is filed, check the value of real property by visiting www.zillow.com first for a “ball park estimate” of the value of the property. Then ask the debtor if he or she has a friend in real estate sales to give an opinion on the value of the property. These two sources will help you as you conduct your investigation on how to exempt the clients real property. These two sources are not the definitive say in how much a property is worth, but they allow a starting point for the discussion.
September 8, 2013 Football news
NY Giants 31
Dallas Cowboys 36
The first game of the series goes to Wendy
as Howard’s team is looking for their first
win of the season.