12 B 07352, 12 A 00765

The debtors filed an adversary proceeding to determine the nature and extent of creditor’s lien on their residence. The Court found that the creditor’s third priority lien was wholly unsecured and thus subject to being stripped off the debtors’ residence and treated as an unsecured claim. The Court found that the sales comparison approach was the appropriate method of valuation in this case and held that the petition date was the relevant date for valuation.