When does it make sense to do a short sale if the bank isn't cooperating? What I mean by that is the bank being stubborn on the price. Is the bank refusing to do the sale unless you sign a deficiency?

Let me explain this a little bit. When you sell your Metro Detroit home via a short sale there is two choices for the bank to make. They can forgive the deficiency and give you a letter releasing you from any liability from the deficiency. Or they can refuse to give you a letter.

If the bank refuses to release you from the liability, you are possibly responsible for the deficiency. Then it may be smart NOT TO DO A SHORT SALE. Now this is just my opinion. Why would you go through the whole hassle of doing a short sale if the bank can come back after you for the deficiency? The only reason I can see to do a short sale versus a foreclosure, is if you can keep your credit in tack and the bank won't report the short sale on your credit report.

From what I have been told is if you can get through a short sale without getting behind on your mortgage payments it is a good thing. Better for your credit report than if you had 90 day lates on your credit report. But nobody knows for sure how badly a short sale affects your credit report. It depends on whether you have late payments or not.

But my opinion is that if you are going to be responsible for the deficiency it is better off to let the home go into foreclosure. Then you are through with the home.... very seldom do banks go after people that have lost their home in foreclosure.

Now let me say this. You need to seek legal advice from a real estate attorney before you make these choices. You should also talk to your CPA or the person that does your taxes. You need to know all three of these aspects:

1. Your possible legal liability
2. Your future financial liability / ability to get back on the right financial path
3. What this will do to credit / can you survive with bad credit for three to seven years?

Don't go on my opinion alone. Get all professional advice from those who specialize in those fields. They are better to guide you on what to do. But it is your decision alone. Choose carefully.

More Michigan home selling tips

Feel free to contact me if you make a decision to sell your home as a short sale. I will be glad to help you get it sold.

Russ Ravary

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My quote of the day:

Most people who succeed in the face of seemingly impossible conditions are people who simply don't know how to quit.

Robert Schuller

I read Bill Cherry's blog about THE WHITE LIE -- EXACTLY WHAT'S THE DIFFERENCE FROM A REGULAR LIE?

As real estate agents it happens all the time. People do want free values. I had somebody ask for it on my website two days ago. I looked up the house and found out they had just bought the foreclosure. I'm sure they just wanted to affirm that they got a "deal". What they didn't realize is that it takes time to do a CMA, and to get a good true value.

But the one that gets me more is when clients use multiple real estate agents and we don't know about it. I am busy enough in life without competing unknowingly. I myself would rather spend time with my family. I would rather spend time with a client that is working exclusively with me. I don't go and tell another client about a great deal when one of my clients puts in an offer on a home. It's not ethical. I am working for that client. I work exclusively for that client and don't work against them.

I just expect the same thing. But once in a great while a client works with multiple agents. I have had them sign exclusive buyer agency contracts and then expect to be let out of the contract. I put my full energy and time into finding a client a home that fits their needs. I am willing to spend my gas, and put miles on my car in the hopes of helping them find a home.

Sometimes there are personality or time conflicts and I have no issues with us going separate ways. But I don't want to be "used". I don't want to be lied to. I don't want to find out after 3 months and seeing 25 houses that you found a house with another agent. If you want to use multiple real estate agents just be sure to let the agents know. Let the agent make the decision if they are willing to work that way.

I myself would rather spend time with my family, or with another client than do that. But each agent can make their own choice. Just don't be like the client last year that wasted my time. He would always be late. He was using multiple agents and never told me. Then he sent me this lengthy email (big lie) telling me that he was putting his search on hold. I later found out it was a lie and that he had put in an offer on a home with another agent. I think his line to me is that they were try to find the best opportunity for them

They were users. They didn't care about others people time or money invested. It was all about them. I don't want to work with people like that. I don't have time in my life for users and inconsiderate people. There are too many great people out there. I closed over fifty homes last year and I can say those clients were the salt of the earth. They were good people. I had one bad apple out of a lot of great, kind clients.

I guess I was very lucky! At fifty years old and a wife with cancer I have taken a different view on life. Life is too short to deal with jerks, users, or people that are inconsiderate. There are thousands of good clients, nice people that are honest and considerate. I'll keep working with them and leave the "others" to somebody else.

Just my take on things......

Here are all the homes that have sold in Redford Michigan in the last year. We have broken them down into price rances. Out of the 1033 sold listings over 800 of them have sold under $50,000. Redford is one of Detroit fringe cities. I would call Redford a blue collar town. Redford is one of America's working towns.

Last year over all the average time on the market was 89 days. Now in the last 30 days it is only 67 days. Homes are moving a little faster. But there are still quite a few deals out there so get out there and start looking.

Search Redford foreclosures and Redford home listings - get the latest home listings emailed to you

Today I was reading on MSN.com. I read Cities where homes have lost the most value. In the article it said the Metro Detroit area has lost 31% of it's value.

If you look at the Detroit Metro real estate market as a circle with Detroit as the center, then the next ring of cities, and then the more upscale cities.

The more upscale cities like West Bloomfield, Canton Township, Northville, Rochester have lost 31% of their value. But you start moving into the inner circle of many of the middle class cities like Dearborn, Redford, Southfield. Those cities had some homes that their high prices in 2003 from $100-$140,000. Now they are ranging from $50,000 to $70,000. I would say the average loss in those cities about 50%

But the City of Detroit real estate pricesin my opinion have taken a huge dive. I don't know exactly what the average sales price of Detroit homes were at their height. But I would take a guess and say the average price was about $65,000. Last year the average sold price of 10,514 Detroit homes that sold through our MLS was $10,692.

$10,692. Average sold price

That's a 83% drop!!!!

So I think over all Metro Detroit real estate has dropped more than 31%. But that is just from a guy in the trenchs. I don't have all the statistics but this is what I am seeing.

Information provided courtesy of RealComp II Ltd