Opinion
ORDER ON MOTION TO VALUE COLLATERAL
PETER W. BOWIE, Chief Judge.
Debtors filed their bankruptcy petition under Chapter 13 on September 25, 2009. The unpaid principal balance on their senior lien as of August 31, 2009 was $254,568.13. They have a second and a third position lien against their residence, as well, both held by Wells Fargo. Wells Fargo concedes there is no equity to which the third note and trust deed currently attaches so that lien is amenable to treatment pursuant to 11 U.S.C. § 1322(b) within the debtors' Chapter 13 plan. The disagreement in this case is whether there is any equity to secure any part of the second note and trust deed. Debtors' appraiser, Mr. King, says he values the property at $250,000 as of his date of inspection, December 4, 2009. The appraiser called to testify by Wells Fargo, Mr. Wessling, opined that the property was worth $315,000 as of the petition date.
Both appraisers testified competently, although they disagreed on a number of points. Most of Mr. King's actual sales comps were of smaller properties, with one less bedroom and half-bath. One of Mr. King's comps was identical in size to the subject property, although the subject has a slightly larger lot by 380 square feet. Mr. King believed that the comp on Corte Nacion had a more desirable location, a superior view, it is in better condition, and has superior upgrades. It sold quickly for $363,000. Because of the differences listed above, Mr. King adjusted the price downward $51,500 and concluded that so adjusted, the Zamora house would be worth $311,500. Corte Nacion sold in late October, 2009 so Mr. Wessling did not use it as a comp because the sale closed after the date of value, September 25.
Mr. Wessling's third comp, on E. Millan, sold on June 30 for $315,000. He felt it had a superior view but was in inferior condition compared to the Zamora's, which he assessed as average. Because of that he made an upward $20,000 adjustment. Mr. King said he would not make that adjustment. Mr. King also testified he finds no difference in value between 3 bedrooms and 4 bedrooms, and he believes a $5,000 upward adjustment for a half-bath is too high. Mr. Wessling testified he believes an additional bedroom warrants a $5,000 upward adjustment, as does the half-bath. Further, he thought Mr. King's third comp, on Corte Nacion was a "great" comp, but he could not use it because the sale date was a month after the petition date.
After reviewing the competing comps, the Court finds and concludes that the Corte Nacion and E. Millan comps are the two best. Even assuming E. Millan's condition was roughly the same as the Zamora's thus eliminating Mr. Wessling's upward adjustment, its adjusted value would be around $300,000. Accepting all of Mr. King's adjustments - all $51,500 of them, Corte Nacion's adjusted value was $311,500. The Court is persuaded, and finds, that the value of the Zamora property as of September 25, 2009, the petition date, was in the $295,000-$305,000 range. For present purposes, the Court need not pinpoint a specific dollar amount because the value is well in excess of the balance of the senior lien. Accordingly, debtors' motion, which seeks to find that there is no equity over the amount of the senior lien to which Wells Fargo's second lien can attach, shall be, and hereby is denied because pursuant to 11 U.S.C. § 1332(b) if any portion of that second lien is secured by the value of the property after deducting the senior lien, no part of that lien is avoidable. Nobelman v. American Savings Bank , 508 U.S. 324 (1993).
IT IS SO ORDERED.