1.)  Are you seeing this happening in your real estate market..  I took out a client tonight.  They just retired and they had bought a new construction home in Canton bout 5 years ago.  Their Canton home has lost over 40% of its value.  Neighbors that are buying homes in Canton MI have payments a thousand dollars less than theirs.

At retirement age they are realizing that the home will never be worth what they paid for it.  That if one of them dies they can't afford the house.  They are realizing that why should they pay all that money in a payment when the person next door isn't.  That the next door neighbor paid $100,000 less.

The guy just got a cash buyout for retirement and they are thinking of paying cash for a smaller home and not having any payments in retirement.

Here is another example of what is going on in the Metro Detroit real estate market

2.)  Husband and wife just got married.  Husband had a Novi home.  But now the original Novi home is worth $100,000 less than it was 6 years ago.  They are walking away from the original home and buying a much bigger and newer home for a lower house payment than they had.

Is it wrong?  Is it financially smart?  Would you do it?  Does it make sense?  Isn't it just getting back the money we gave away to the big banks and their executives? 

This is the fourth deal I am working on like this.  I myself think a few people are getting financially smarter.  I myself think they are doing the right thing.  Sure it may not be morally or ethically right, but financially it is the right decision.

Russ Ravary your Metro Detroit real estate agent