CHATTANOOGA (WRCB) -- Houses currently for sale in Granada Estates are listing for around $250,000. Families who live in the subdivision off Ooltewah-Ringgold Road say they're bound by a strict covenant and they're worried about what's going up right at the neighborhood's front door.

"We would've never purchased in this subdivision had we known they were going to move mobile homes into it, " says Kimberly Womack.

They're actually modular homes going up along Ooltewah-Ringgold Road. The builder says there's a big difference. To Womack, there's no difference.

"It definitely is not a welcome sight anywhere in the subdivision, let alone at the entrance," she says.

The developer of Granada Estates recently sold several lots at the front of the subdivision to Wimbledon Properties. Part of that tract of land is in Julie Beaumonte's backyard.

She's keeping an open mind. "There are lots of different technologies and ways of building homes and maybe this is a new way and it's going to have a nice product in the end and I'm waiting to see."

A modular home is built in a factory, and then hauled to the property in blocks, where it's assembled on a foundation. The construction crew has to conform to the same code as an on-site builder.

The contractor says these houses will have garages and porches and once they're finished, they'll blend in with other homes in the area.

Kimberly Womack finds that hard to believe. She owns a 6,000 square foot house on Imperial Drive.

"We bought our house at the end of the cul-de-sac a year and a half ago and I can't imagine what this is going to do to the value of our property," says Womack.

The folks at Wimbledon Properties don't believe neighboring property values will plummet, far from it. The homes under construction will list around $170,000-180,000.

Rick Scholze, one of the original owners who sold the property to Wimbledon, says he would not have agreed to sell if he'd known modular homes were going up.

Scholze still owns several lots in Granada Estates and says he's as upset as the neighbors who've called him to complain.