In re Anne M. Cummings, Debtor

Facts: A dispute over the fair market value (FMV) of an SFR property arose between the owner and the holder of a mortgage secured by the property. Both hire licensed appraisers who reach very different opinions of value for the property. The valuation by the appraiser for the owner is lower based on the recent sales of similar properties located outside the property’s immediate neighborhood. The mortgage holder’s appraiser sets a higher valuation based on older sales from similar properties located within the immediate vicinity of the property.

Claim: The mortgage holder claims their appraiser’s higher opinion of value is the property’s FMV since the opinion is based on the value of similar properties sold in a closer geography to the property.

Counterclaim: The owner claims their appraiser’s lower valuation of the property is the current FMV since the opinion of value is based on similar properties sold more recently.

Holding: The bankruptcy appellate court holds the lower valuation is the FMV of the owner’s property since the opinion for the lower valuation used pricing from more recent sales of similar properties. [In re Anne M. Cummings, Debtor (2026) WL 906913]

In re Anne M. Cummings, Debtor

 

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