UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

CORBIN DIVISION

IN RE:

PAUL GLENN DICK

BARBARA ANN DICK CASE NO. 98-60955

DEBTORS

MEMORANDUM OPINION AND ORDER

The debtors in this Chapter 7 case filed a Motion to Redeem Mobile Home on September 8, 1998, and listed the value to be used for the redemption was $1,500. Shortly thereafter, the debtors amended the value of the mobile home in their schedules to list the value of the mobile home as $1,500 instead of the original $8,500. On September 21, 1998, a Response of Citizens National Bank (ACitizens National@) to the Debtors Motion to Redeem Mobile Home was filed by Citizens National objecting to the redemption price. That Response indicated that the debtors were indebted to Citizens National in the amount of $7,830.65 as of that time.

The Motion to Redeem came on for hearing before the Court on October 15, 1998, and was scheduled for a valuation hearing on December 10, 1998. The debtors moved to continue the valuation hearing to January 14, 1999 and that motion was sustained.

On January 14, 1999, an evidentiary hearing was conducted by the Court at which the debtors and their appraisers appeared. Pursuant to the Court=s Order, the debtors had filed the affidavits of the debtors and of their appraiser, Rick D. Moore. Mr. Moore found the value of the mobile home to be $1,500.

Citizens National has filed three affidavits of their appraisers. Because only one of their appraisers was present in Court to be cross-examined by opposing counsel in compliance with this Court=s Order for Valuation Hearing of October 19, 1998, the Court will consider only the appraisal of that witness which indicates the value of the mobile home is $7,000. The Court heard the testimony of the appraisers elicited by the parties and, because of the wide disparity in appraisals was not satisfied that the Court had before it adequate evidence to decide the matter. The Court observed that the higher appraisal was more than four and one-half times the lower appraisal. The Court ordered from the bench that an additional appraisal would be obtained by an appraiser selected by the Court and the parties expressed no objection thereto.

An Order was entered on January 29, 1999 directing that Clifford Childers appraise the mobile home and making arrangements for payment of his fees. That appraisal was filed and is part of the record. In accordance with this Court=s order, neither party has requested to examine Mr. Childers and the matter stands ready for decision by the Court.

In reviewing the evidence, it is clear that the mobile home in question has numerous problems, including a bent support beam which is known as being Aout of camber@. This bent support leads to many problems inside the house since it distorts the framing of the mobile home.

The Court believes that all three appraisers qualify as experts to testify as to the value of the mobile home. It appears that the appraisal rendered by Childers contains significantly more detail concerning his basis for the finding of the value of the mobile home. The appraisal tendered by Citizens National consists of an affidavit with a short letter attached to it. The appraisal of Moore contains more information than that of Lee, but also does not elaborate significantly on the basis for the valuation of the home.

The Court finds the appraisal of Childers to be the most credible and therefore concludes that the value of the mobile home in question is $3,500.

For the reasons set forth above, it is hereby ORDERED AS FOLLOWS:

The Debtor=s Motion to Redeem is sustained, in part, and the debtors shall be allowed to redeem the aforesaid mobile home by payment of the sum of $3,500 to Citizens National Bank within thirty (30) days of the date of this order;
The debtor=s Motion to Redeem is overruled as to the valuation of $1,500 set forth therein; and

If the debtors fail to tender the $3,500 redemption price within thirty (30) days from the date of this Memorandum Opinion and Order, and it appearing that a discharge has been entered in the case, thereafter the creditor may proceed with its remedies concerning its security interest in the mobile home.

Dated this ____ day of April, 1999.

BY THE COURT

________________________________

JUDGE

COPIES TO:

Debtors

Benny E. Ham, Esq.

Annette Morgan, Esq.

James R. Westenhoefer, Esq.

U.S. Trustee