Michael Mergell

Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

On August 22nd, 2008, the Foreclosures Help resource website conducted a survey of U.S. residents who are either now in foreclosure or at least three months delinquent on their mortgage. The purpose of the study was to get a better understanding of the needs of people who are facing foreclosure. Below are the survey results, ranked in order of popularity from most to least.

1) How exactly do I protect my home from foreclosure?

The most popular question on foreclosure homeowner's minds was naturally how to stop the foreclosure. In many cases the questions was phrased more specifically, such as "what steps do I take to protect my home from foreclosure."

Divorce, loss of employment, and sudden medical bills are among the many things that can cause a homeowner to stop making timely mortgage payments. It does not take long for the bank to start foreclosure proceedings, and many of the homeowners don't know how to defend themselves. The majority do not want to consider extreme measures such as selling the house or declaring bankruptcy, and refinancing is not usually possible. Most of these homeowners are suffering transitory financial trouble that they expect to pass quickly. While they can resolve the balance in arrears, the majority of American homeowners cannot do so immediately.

2) How to protect my credit rating?

While in foreclosure, most homeowners will want to protect their credit record. The media's constant tales of woe and seven-to-ten year credit ruination has scared every homeowner sufficiently. While foreclosure itself is long and drawn out, the black mark of it on a credit rating lasts much longer. While this mark stands, it is now common knowledge that foreclosed-upon borrowers cannot get any future loans for cars, real estate, business loans, and sometimes not even an apartment, despite being able to resolve the financial trouble quickly and make a substantial salary in the future.

3) What happens if I file bankruptcy?

Filing for Bankruptcy is something that the respondents only considered as the very last straw to keeping their property, but nearly 100% of them mentioned it. Unfortunately, all of them had many follow-up questions about bankruptcy, such as which kind of bankruptcy should they file for, is bankruptcy is worse for their credit record, and our favorite, who gets to declare the home during a bankruptcy when there is a divorce going on too. There were many such questions, all equally important.

4) Is it possible to force the lender to make a deal with me?

A final common question concerning foreclosure relates to the method by which they can make a financial institution agreeable to their goals. Generally, financial institutions can be difficult to work alongside while you are experiencing foreclosure. At times, financial institutions concern themselves with your troubles and attempt to negotiate an agreement with you, though jsut as often a lender files foreclosure without letting you know, and the police actually shows up at the trustee's sale in order to extricate you from your home. Worried about times like these, homeowners truly desire to be told the method by which they may cause a financial institution to concern themselves with their situation, and negotiate a solution fast.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

Everyone is aware of the current real estate crisis and increased foreclosures going on in the States. But what many people may not be aware of, is that there are some great values available if you are looking to purchase a house or property. Whats different now then in the past, is that not only are the number of forecloses at all time highs, but the quality is much higher as well.debt is one of the most important things you should do your homework on. After that, find out what types of payment plans are allowed, and have any required financing in place beforehand. Obviously any additional savings you may have will help.

If you are considering buying a foreclosed home from a government auction then you you picked a good time to do so. Here is a list of the advantages and disadvantages of buying a foreclosure versus buying a house using a realtor.

Some of the pros of purchasing a foreclosed/pre-foreclosed home are:

- Price is the number one reason to purchase a foreclosed home.

- Many of the homes are in great condition relative to what they cost.

- The selection range of home available to choose from is extensive.

- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).

- Insurance is optional which if not required will provide an additional monthly savings.

- Good property investment for renting or reselling.

- Not as risky as stock investing, plus you will own something of physical worth.

Disadvantages:

- Mortgages may be harder to get (unless you have great credit with your bank).

- Need to be mindful of existing liens or taxes that have not been paid on the property.

Making sure that the foreclosed home you're interested in is clear of all

Government auctions are held every week throughout North America. You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction is very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding during your first visit to a government auction so that you are comfortable with this process.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers

According to a report on 60 Minutes last Dec. called The Mortgage Meltdown, the number of foreclosures that we will face in the next 12 - 36 months is frightening. The next wave of loan defaults will come from Alt-A and Payment Option Arm loans.

How do we deal with this next wave? Pres. Obama's Housing Affordability and Stability plan is a start but I think the administrative aspect is unwieldy at best. There are still a huge number of homeowners that will face foreclosure no matter what. Homeowners that don't meet the criteria of the HASP or those that don't have FNMA or FRMC backed loans. If you think about it, it's almost as devastating as terrorists driving jumbo jets into the World Trade Center. A veritable foreclosure tsunami.

How do we stop this wave? Can we stop it or slow it down? To take a line from Pres. Obama, Yes We Can; one real estate short sale at a time.

I know there are thousands of other Real Estate Brokers / Agents like myself that are focusing on successfully closing short sales across the country. The lenders that hold these loans are for the most part, not very helpful. Their organizations are byzantine at best and they seem to be adding gasoline to the fire by not cooperating with the foot soldiers in this war, i.e. - my fellow RE Brokers and Agents across the country.

This is why I am focusing my real estate practice on helping distressed homeowners short sell their properties.

MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers If you are behind in your mortgage payments and the home may be going to foreclosure soon, there may be a way to delay foreclosure and possible save the home. Many of the mortgages we currently have were sold. Original mortgage notes may be lost or difficult to find. I saw a news program today that indicated that one way to get some extra time is for seller to ask for the Mortgage Note. When the Mortgage Co tells you the home will go to foreclosure, ask to see the note. In some cases this can take some time for the Mortgage lender to find. This extra time may be enough time to sell the home. Time to Call Michael Mergell at RE/MAX Ability Plus (317) 645-8717. Or visit my site at www.MichaelMergell.com MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET

Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers $787 billion is a nearly unfathomable number. What does it really mean and where it all that money going? According to the official American Recovery and Reinvestment Act website the money is broken down in the following manner: $288 billion - Tax relief $144 billion - State and local fiscal relief $111 billion - Infrastructure and science $81 billion - Protecting the vulnerable $59 billion - Health care $53 billion - Education and training $43 billion - Energy $8 billion - Other The biggest chunk of the money goes to something called "tax relief." The website defines it as including "$15 B for Infrastructure and Science, $61 B for Protecting the Vulnerable, $25 B for Education and Training and $22 B for Energy, so total funds are $126 B for Infrastructure and Science, $142 B for Protecting the Vulnerable, $78 B for Education and Training, and $65 B for Energy." That does not really make anything clearer. The Washington Post recently broke it down in even greater detail, summarizing the payments that would go directly to individuals. The biggest portion of that money goes to Medicaid at $90 billion. This money will go directly to the states, providing a 6.2 percent increase in medical benefits for the poor over the next 27 months. It also helps bolster the COBRA program that provides health insurance for laid-off workers. The next category of money going to individuals is $73. 8 billion in tax provisions, which includes $69 billion in tax credit payments. This is where most Americans will see some money going directly into their pockets. The Making Work Pay credit "will return up to $400 a year to individuals and $800 year to families in each of the next two years. The cash will flow into the paychecks of individual workers making less than $95,000 a year and couples who earn less than $190,000." What this really means is Americans can expect around $20 extra in their paychecks each week. The tax provisions also include tuition tax credits and expands the child tax credit to $1000 per child. There is $57.2 billion allocated for assistance to unemployed families and $25.1 billion going toward health insurance. There is $20.8 billion being funneled into health information technology, an Obama campaign priority of creating a nationwide network of electronic medical records. This is primarily a job creation initiative. The rest of the money gets divided into six major categories: Transportation, Education, Science, Environment, Energy and Military. The biggest chunk goes into education related programs from helping children in poverty go to preschool to renovating schools to providing aid to needy college students. As the website states, the economic stimulus package "targets investments towards key areas that will save or create good jobs immediately, while also laying the groundwork for long-term economic growth." The President also promises transparency and accountability. Vice President Biden has the task of overseeing the American Recovery and Reinvestment Act, along with former Inspector General at the Interior Department, Earl Devaney. Devaney was named head of the ARRA Accountability Board last week. MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET