Your Home Value May Suffer Due To Foreclosures

Due to the increasing number of foreclosures in the US, there has been a drastic impact on the values of homes in certain regions. According to some people under such circumstances, it is highly difficult to be able to sell the homes, as they are not getting the expected amount for their properties.

As per Amanda Frank, a homeowner, she is having problems with selling her house in West Chester. She had expected to gain at least $107,000 from the sale of the house but unfortunately, the buyers came up with much lesser amount to pay.

According to her, “The couple that was going to borrow it had an FHA loan. They came back and did an appraisal and it came back appraised at $80,000. That is $8,000 less than our current mortgage and $3,000 than our 2008 Butler County tax appraisal.”

According to the appraiser, the low value of the properties determined the value for the rest of the homes in the same locality. According to Frank, “They said the comparative sales within the neighborhood do admit there’s a downward trend in the pricing.” In fact, another home in the same locality have been appraised at $105,000

At the same another house of the same sq ft has been appraised for $70,000 and the owner of this house is trying attempting for short sale or selling the house for lesser amount than what is needed to pay back the mortgage debts.

Another house in the same locality suffered to some extent due to negligence and needs to be repaired as it is expected that this will increase the over all value of the house. However, to increase the value of the houses, more needs to be done in the neighborhood.

As observed by Frank, “Who wants to hear that without a predatory lender, without an adjustable rate mortgage, without buying on the bubble, here you are upside down on your current mortgage.” A lot many families have lost jobs or ran out of employment and hence have to face the issues of foreclosures.

The worst part is that the Franks have invested almost $100,000 in the house they own but on the contrary, it has been appraised at a mere $80,000. The situation is the same with their acquaintances, who are intending to sale their homes at approximately $126,000, but the buyers are only ready to pay $100,000. Hence, one needs to rethink before they invest any further in renovation of homes, as that does not seem to improve the value of the homes much.

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