95 B.R. 502 | Bankr. N.D. Ohio | 1989
ORDER
This cause came before the Court on the adversary complaint filed by the Debtors in which they seek to avoid a judgment lien pursuant to 11 U.S.C. Sec. 522(f)(1).
In 1977, the Debtors purchased the real property located at 1443 Pepperwood Drive, Niles, Ohio, for Forty-Eight Thousand & 00/100 Dollars ($48,000.00). In May 1985, the property sustained damage from a tornado. In February 1988, a fire damaged the interior of the home. The Debtors received insurance proceeds of Eighty Thousand & 00/100 Dollars ($80,-000.00) for the damage caused by the fire— all of which was expended upon repair of the home. On February 9, 1988, CERTIFIED DEVELOPERS & MANAGEMENT CO. (“CDM”) obtained a default judgment against the Debtors in the amount of Eleven Thousand, Eight Hundred Four & 00/100 Dollars ($11,804.00), plus interest. On March 24, 1988, CDM filed a Certificate of Judgment for a lien against the Debtors’ residential property. The Debtors filed a petition for relief under Chapter 7 of Title 11 of the United States Code on April 29, 1988. At the time of the filing, the Debtors’ residential real property was encumbered by a first mortgage in the amount of Twenty-Nine Thousand, Three Hundred Forty-Seven & 64/100 Dollars ($29,347.64) and a second mortgage in the amount of Twenty-Nine Thousand, Four Hundred Forty-Seven & 76/100 Dollars ($29,447.76). The Debtors assert that they are entitled to a Ten Thousand & 00/100 Dollar ($10,-000.00) homestead exemption pursuant to Ohio Revised Code Sec. 2329.66(A)(1). As a result, the Debtors assert that they are entitled to avoid CDM’s judgment lien by virtue of 11 U.S.C. Sec. 522(f)(1). Apparently, CDM only disputes the Debtors’ proposed property valuation of Sixty-Five Thousand & 00/100 Dollars ($65,000.00). Therefore, the sole issue before the Court is the valuation to be accorded the Debtors’ residential real property.
Mrs. Barrow testified that she believed the property presently was worth a fair market value of Sixty-Five Thousand & 00/100 Dollars ($65,000.00). She based her opinion on a number of factors. First, a somewhat larger house next door, which had also sustained damage from the 1985 tornado, was sold for between Sixty Thousand & Seventy Thousand & 00/100 Dollars ($60,000.00-$70,000.00) after remaining on the market for about three years. Before the petition filing date, the Debtors listed their home on the market for Sixty Thousand & 00/100 Dollars ($60,000.00) for a period of six months, but they received no offers. Although the Debtors believe their property was worth Sixty Thousand & 00/100 Dollars ($60,000.00) before the fire, they now believe the property is worth Sixty-Five Thousand & 00/100 Dollars ($65,000.00).
Counsel for CDM did not present any evidence demonstrating a higher fair market value appraisal of the property. However, CDM contends that the Debtors should not be allowed to claim a value of
IT IS SO ORDERED.