You may want to consider contacting your lender to find out if a "short sale" is a possibility, when your lender agrees to take less than the amount owed as a full pay-off on your loan. If you have more than one mortgage, call the 2nd lender as well. When your home is listed by a Realtor, they will make it known that an offer must be accepted by the lender as well as the buyer as a short sale.
If the foreclosure homes are in great shape, they will be tough competition. If your home has features they don't, and is in much better shape, the foreclosures are less competition.
It's important to take a fresh look at your home & property - as though you were a buyer thinking about purchasing it. Take some photos and compare them to other homes listed for sale in your area on the net. You may see some things you can improve that won't cost a lot but still give you an edge. Mainly, clean like crazy, get rid of any clutter, and move out any excess pieces of furniture. There are serious buyers still out there, and some do not want to buy foreclosed homes.
Most Realtors(R) are not appraisers. You may have a range of value from between 84,000 to 95,000 and that may actually be the range. I would agree, you purchased your home at the peak of the Michigan market and values have dropped. Only a local agent would be able to give you correct information. I do not recommend going with the agent giving you the highest price without some type of proof. Obviously neither used the same homes in their evaluation.
Question: Do you want to move out of State, or do you have to move out of State? If you want to move, I would think hard. But, then again, the date keeps getting pushed back for when the market will recover. I believe the US will be pressured by the G-7 at their upcoming meeting. This has caused a global problem. It may still take years with an "s".
If you have to sell, I suggest spending the money for a not for refinance appraisal. That would give you a better idea of how much money you might have to bring to the table.
Many homeowners are choosing to lease their homes, that may be an option but you should really think hard about any problems you might have including eviction and increase in insurance and non-homestead property taxes.
but you are trapped
until the foreclosures get sold
and even when they sell
the fact may be that your house
is really only worth $45K
you bought at the peak of the bubble in 2005
hang on for 5-10 years
it should be worth $97K again
agent - Leanne Smith