Sharyl R Highsmith

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
WILSON DIVISION
IN RE:
SHARYL R. HIGHSMITH,
DEBTOR. 	CASE NO. 07-04693-8-JRL
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ORDER
This case is before the court on a motion by 21st Mortgage Corporation objecting to the
valuation of its collateral listed in Sharyl R. Highsmith’s (“debtor”) chapter 13 plan. On April 23,
2008, the court conducted a hearing on this matter in Wilmington, North Carolina.
On March 19, 2005, the debtor purchased a 1998 Central mobile home for $26,650.00. The
debtor financed $19,241.00 of the purchase price pursuant to a retail installment contract. 	21st
Mortgage Corporation is the owner and holder of that contract. Debtor filed a chapter 13 petition
on December 11, 2007. 	21st Mortgage Corporation filed a proof of claim listing a payoff of
$17,790.35. The debtor’s chapter 13 plan values and provides for payment of the mobile home in
the amount of $10,712.00, with the remaining balance treated as unsecured. 	21st Mortgage
Corporation objects to this valuation on the basis that the current N.A.D.A. lists the market value
of the mobile home at $13,500.00. In addition, 21st Mortgage Corporation objects because the
SO ORDERED.
SIGNED this 30 day of April, 2008.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
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Case 07-04693-8-SWH Doc 23 Filed 04/30/08 Entered 04/30/08 15:51:52 Page 1 of 2

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debtor’s mobile home is not presently insured.
At the April 23, 2008 hearing, the debtor argued that her mobile home is worth less than the
N.A.D.A. value due to numerous major defects in the mobile home. Specifically, the debtor testified
that the home leaks during heavy rains, mildew has settled in the bedroom and kitchen, the kitchen
counters have separated approximately two inches from the counter, the kitchen cabinets are
swelling and are water-stained, air conditioning vents covers are missing, and the home does not
have underpinning. The debtor also introduced photographs documenting these defects. The debtor
has not received repair estimates, but her plan’s valuation of the mobile home reflects what she
believes are reasonable repair costs.
Based on the evidence presented during the April 23, 2008 hearing, the court accepts the
valuation of the mobile home as proposed by the debtor. The N.A.D.A. value of the mobile home
does not accurately reflect the diminution of the mobile home’s market value based on the many
defects described by the debtor. With respect to the lack of insurance on the mobile home, the court
directs the debtor to obtain insurance within sixty (60) days of the hearing date and to provide
evidence of the insurance to 21st Century Mortgage Corporation’s counsel within that time period.
“END OF DOCUMENT”
Case 07-04693-8-SWH Doc 23 Filed 04/30/08 Entered 04/30/08 15:51:52 Page 2 of 2