Steven Pham's Legal Blog

The recent passage of the $700 Billion bailout by the U.S. government signals that this is a time of uncertainty.  While most people would agree that the bailout would help the financial industry from failing and going into bankruptcy, experts are not certain and disagree on how much it would help some of these failing banks.  Worse yet, many economist and political analysts do not think that the bailout would help home owners who are facing bankruptcies and foreclosures. 

The Act will allow the feds to buy up loans that are facing foreclosures, leaving banks with assets and revenue to make loans to more financially sound individuals and institutions.  In theory, this could work.  However, the Act will not buy up all bad investments, such as construction loans.  So, which banks are likely to fail while others are likely to be able to survivng this financial shake-ups?  Most likely, it would be local banks and mortgage companies who have limited assets and more likely to make riskier loans during the inflated, bull market in the real estate industry.

What does this mean to home owners and businesses?  If you are facing foreclosures, the recent passage of the $700 billion bailout will not help you.  If you are a general contractor, developer, and investors, the bill may help in the long turn, but many experts agree that the Act will not help in the immediate future.  Housing value will continue to decrease over the next year.  However, if you are one of the lucky investors who have a nest egg, or be able to get a loan, and ready to invest, this is the right time.  I suggest that regardless whether you are facing bankruptcy, foreclosures, or are those that are lucky enough to start investing, contact one of our Houston real estate attorneys, our Long Beach business and contract lawyers, our U.S. bankruptcy attorneys, or our U.S. credit repair attorneys for assistance during this time of uncertainty.