The Process of a CCV Valuation Lawsuit
When a CCC valuation lawsuit is initiated, it comes from a real estate investor that purchased a property under the terms of a purchase agreement but has not received all of the agreed upon compensation. The investor wishes to sue the seller because they feel the value of their investment has fallen below what they paid for it. A CCC valuation lawsuit will help a judge and a jury determine the value of the property. The claim will be based on the appraisal process used at the time the contract was signed. There are many different types of real estate valuations and they all have different rules that must be followed.
CCC Valuation Lawsuit
First the plaintiff must file a CCC valuation complaint against the owner of record. If the plaintiff has a written contract with the seller, they will be able to go into court without a signature. However, if the transaction was not entered into a written contract then the plaintiff must file the CCC complaint against the owner without the signature of the seller. This process can only be done in a federal court. There are some states that do not have a requirement for this type of lawsuit.
After the owner is given notice of the lawsuit they must do one of three things.
They can admit to the loss and agree to make all repairs and replacements necessary to make the property habitable or the owner can deny the claim. Once the owner denies the claim then the process will move forward. If the owner still refuses to acknowledge the claim then the plaintiff will be forced to enter a settlement agreement.
The plaintiff is expected to hire an appraiser who will provide them with an appraisal.
The appraiser will determine the fair market value of the property. If the appraiser determines that the value of the property has fallen then the owner may have to pay off what they owe. However, if the appraisal determines that the value of the property is still high then the owner may be able to sue in court to recover what they owe. If the owner does enter into a settlement agreement then they must assign someone to collect monies that accrued during the time that they were insolvent. The person assigned to collect these monies will be paid by the owner of the property.
Before the owner can file their claim, they must first notify the U.S. Government that they do indeed need damages for their personal injury lawsuit. If the owner fails to file this claim within a certain time then the government will have no way of enforcing the property valuation.
Once the owner has filed their claim with the U.S. Government then they must submit it to the Office of Claims.
The Office of Claims will inspect the property and make sure that everything was paid for. If anything was missed or there was an error the owner must immediately remedy it or the case will go to court.
The owner must keep track of all monies received during the time that their property became uninhabitable as well as any monies received after the valuation process has been completed. They can use this information to try to recover any money that they lost during this process. However, the owner must also prove that they were in financial distress throughout the year that the home was not occupied.
There are many ways to defeat an attempt to bring a CCC valuation lawsuit.
If the owner is able to prove that they were not negligent, they may be able to avoid going to court all together. The owner must also be able to prove that their property was not uninhabitable. Many landlords who do suffer financial setbacks will offer their former tenants’ rental settlement payments as compensation for the loss of their rental income. This process may allow the landlord to recoup some losses but they must prove it in court or this deal will fail. It is always best to hire an experienced real estate lawyer to handle this type of case.