The Chapter 7 Trustee has the absolute right to attempt to sell the home. In most (but not all) jurisdiction, the Trustee cannot complete a sale unless he can pay the allowed exemption out of the net sale proceeds before anything goes to creditors. What his analysis does or does not say is not important. What an appraisal does or does not say is not important. What is important is whether or not he finds a buyer willing to pay the asking price, whatever that asking price is.
If your mom does not believe there is value over the allowed exemption then she files a Motion to Abandon. The Trustee will object to the Motion. There will be a hearing on the Motion. Your mom's attorney requests that the judge set a time frame for the Trustee to obtain a proper sales contract that will provide for the exemption. If the Trustee cannot bring such a contract before the court within that time frame then the Trustee must abandon the asset.
If your mom does not want to fight the issue then she makes an offer to the Trustee to buy back the non-exempt equity. Since there is a controversy over the value of the asset your mom starts the offer at a lower amount, say $3,000.00. If the Trustee is interested in negotiating he will make a counter-offer. My guess is that the parties will settle somewhere around $5,000.00.. This back and forth is a darn site cheaper than converting to a Chapter 13.
If you mom's attorney is not familiar with the above approaches, time to find another attorney.
Des.

