Foreclosure next door (foreclosed, mortgage, mortgage, sales)

[cjones15]

We just found out the house right next door is being foreclosed on. The only info we have is the owner's just turned the keys over to the bank instead of the banking coming after them. We listed our house on the market 2 weeks ago. How will this affect the sale/price of our home? We were already concerned because a house half a block away and the exact floor plan as ours just sold for 25K then what we have listed due to a short sale. We are loosing money on our house just listing it so the thought of loosing more is scary.

Thoughts or opinions??

[KCfromNC]

Banks in your area might be swamped with foreclosures, so it might take them a while to get the house on the market. If you have to move, price aggressively now and see if you can get your place sold before they list the foreclosure. Aggressively will probably be below comps for the area - short sale or not.

[cjones15]

I know there are a ton of foreclosures right now. We are priced on the low side of comps, not below, but that was before the house sold for 25K less then what we have our house listed. There are a ton of houses for sale where we are but we are not in a good location. Most houses get pulled off the market and the ones that do sell are taking 6+ months. We haven't had a single showing. Our realtor says our house is one of the best in our neighborhood.

We were not prepared to sell/buy financially. We are already going to owe money at closing and every penny we drop the price is less we have for a new house. My husband wasn't looking for a new job but landed one. We are moving out of state and are going to have a lot of expenses. He also has to start his new job now so we have to pay rent on an apartment for him while the kids and I stay here to sell our house. It will all work out in the end!!!

[bentlebee]

In my area the house that was foreclosed on had a for sale sign in immediately. Since then no other home has been sold than another foreclosure home. This is a bad market to sell your home for the normal market price if short sale or foreclosure (similar homes) homes are in your street or close by.
We just closed on a short sale home (bought it) and one person is having his similar home for sale just $ 9K over the short sale price we paid, this because he is doing a FSBO (he doesn't want to pay commision) and wants it to be sold. The rest of the similar for sale homes are priced way higher. We bought the home $ 60K under the builders price of 2006, so a good deal for us.
I know you hoped for a positive note but I try to be honest. If it was different I would have put my home on the market too, I don't even sell the homes I buy but rent them out until the market is changing.

[cjones15]

It wasn't in our plans to sell now but with moving out of state we have to. If it wasn't for that we would never sell in this market. There is no for sale sign out front yet but I saw a guy from the bank the other day taking pictures from his car and a crew came over and winterized the house and put signs in the windows saying it had been winterized and to not turn on the water.

Honestly, there is no way we can go as low as the short sale house. It's 25K under what we are asking!!! If you compare us to other houses we comparable. It's that one house that has really thrown it. It sold a few days before we listed and wasn't showing up on the comps at the time. We are only talking a 140K house so 25K is a lot. We are also having to do some drastic saving to buy and close on a new house. I realize it is no one's fault we are having to move but we are trying to be realistic but also looking our ourselves as well.

[8 SNAKE]

Originally Posted by cjones15

We were already concerned because a house half a block away and the exact floor plan as ours just sold for 25K then what we have listed due to a short sale.

Thoughts or opinions??

The market seems to be saying that your house is worth $25k less than what you've got it listed for. That's a tough pill to swallow, but might as well look at the facts and come up with a game plan.

You mentioned that your husband got a new job in another state. Does he have to take it? Now? It sounds like you were able to keep up with your mortgage and this move is what's putting you in a bind because you're going to sell for a loss. Perhaps you can hold off on the move and avoid taking a big hit?

[8 SNAKE]

Originally Posted by cjones15

Honestly, there is no way we can go as low as the short sale house. It's 25K under what we are asking!!! If you compare us to other houses we comparable.

You need to think about staying put if at all possible. The comps don't mean much, because those houses aren't selling. You need to look at the home that actually sold to see what your home is worth. That house is exactly the same as yours, and sold for $25k less than your asking price. You're not going to get a much better comp than that.

[younglisa7]

Originally Posted by cjones15

It wasn't in our plans to sell now but with moving out of state we have to. If it wasn't for that we would never sell in this market. There is no for sale sign out front yet but I saw a guy from the bank the other day taking pictures from his car and a crew came over and winterized the house and put signs in the windows saying it had been winterized and to not turn on the water.

Honestly, there is no way we can go as low as the short sale house. It's 25K under what we are asking!!! If you compare us to other houses we comparable. It's that one house that has really thrown it. It sold a few days before we listed and wasn't showing up on the comps at the time. We are only talking a 140K house so 25K is a lot. We are also having to do some drastic saving to buy and close on a new house. I realize it is no one's fault we are having to move but we are trying to be realistic but also looking our ourselves as well.

Why are you even thinking(or aren't you?) about buying another house. You are in enough trouble. Why would you compound your problems? Do what you have to and get out of your mess first. Do you have to move? Can you lower the price more? Can you rent out your current house? Is it feasable?
You have to consider all options before making a huge mistake.
Good Luck
Lisa

[cjones15]

We based our selling price off of what other houses have sold for. The short sale closed the day before we listed and we didn't know about it. It is 25K less then all the houses that have sold already and what are listed. It just happens to be half a block away and the exact floor plan as ours so it feels like it hits us pretty hard.

Yes, we have to move! My husband starts a new job out of state in 3 weeks. We found a small apartment for him to rent and the children and I will stay here until this house sells. Finding a rental in the area we are moving to has been impossible.

I never said we would be buying before this house sells. We will not buy a new house until this one sells. Which is why my husband is moving for the new job and I'm staying here. We know better then to buy a house while we still have this one. we would not do this if we didn't have to. As far as renting out our house, it makes me very nervous. So many people have been burned. We take a lot of pride in our house and keep things looking nice. I would expect the same but know that's impossible to guarantee with renters.

Having the one short sale that was very low was a big concern, now having a foreclosure next door is worrying me. My question was how would having a foreclosure right next door affect us. I don't need to be preached on about if I should sell now or wait!!!

[bentlebee]

It all depends on what the price the foreclosure will be sold for. Banks are looking for the 3 latest sold homes in the area which are comperable to yours. They also look at listing prices and pending sales. So it all depends but it is hard to sell your home with these things happening. The only "good" side on this is that the property taxes will go down in the future.... In my area there are many foreclosures and short sales. In my sub area there are 2 foreclosures and more to come, so for me the decision is easy. Not to sell right now. I'm sorry I wish I could give more optimistic info.