GRAVES COUNTY, Ky. — Imagine trying to sell your home and realizing it just isn't worth what you thought it was.

That's what lots of families are discovering and a local realtor said foreclosure is to blame.

If two homes are for sale, one for sale by owner and the other by a bank that desperately needs to get rid of foreclosed property, then a buyer will likely choose the foreclosed home because of the deep discounts offered. That's good for the buyer but bad for the seller.

Now imagine other foreclosed properties pop up in the neighborhood. If they all sell for less than what they're worth, a realtor said that brings down the value of similar houses in that neighborhood.

At first glance, a Graves County house may seem ordinary.

But take a closer look and you'll discover signs on the door state this house belongs to the bank.

Realtor Tim Beck takes us inside and what we see is sad, from what used to be a kid's room to the closets.

In almost every room, and even in the backyard you'll find plenty of things this family left behind.

But Beck said this house isn't just depressing. It can lower the value of other homes in the neighborhood, like Anna and Fred Kirby's house, which has been on the market for nearly three years.

"We thought it would go pretty fast because it's a nice built home and it didn't and we're still waiting," the Kirbys said.

"You can't be in any big hurry. We've had a lot of, several lookers, tire kickers I call them," Fred Kirby said.

But the Kirbys said they just can't compete with big banks who have to get rid of foreclosures.

"Its not fair. It's really not fair but there's really not a lot I can do about it," Anna Kirby said.

"I don't know if people have slowed down to actually put a pencil to it," Beck said.

He's seen it time and time again and fears this nasty problem will get worse before it gets better.

Beck said the closing of the Union City Goodyear plant will also hurt the housing market.

To give you an idea as to just how many foreclosed properties are out there, Beck said he's closed 57 transactions this year and the majority of those were foreclosures.

The Graves County Property Value Administrator said he's not seeing this affect taxes yet but in theory, if a bunch of houses go down in value, those homeowners will pay less, which Beck fears could mean less money for essential services.

Beck said if you are behind on payments, don't hesitate to call your lender and ask if there are other options available to avoid foreclosure at all costs.

A look at foreclosure numbers by state as of last month: in Kentucky one in every 1879 housing units received a foreclosure notice; in Missouri, one in every 1051; in Tennessee, one in every 949, and in Illinois one in every 480 housing units received a foreclosure notice last month.