Distressed Property Blog

As Congress returns to Washington after the spring recess, the Democrats will be challenging the following statement by President Bush:

“The temptation in Washington is to say that anything short of a massive government intervention in the housing market amounts to inaction. I strongly disagree with that sentiment. I believe there ought to be action, but I’m deeply concerned about law and regulation that will make it harder for the markets to recover.“

If the Democrats have their way, the Government will assist distressed borrowers with something close to $500 billion, but the Republicans claim such a “bail-out” only passes the buck to the taxpayers. All this as U.S. Treasury Secretary Henry Paulson unveils major reforms including giving the Federal Reserve more oversight power and creating Federal supervision or mortgages.

Given the turmoil, it’s hard to imagine what a win for distressed property owners looks like. Either the Government appears to have gone easy on financial institutions responsible for the current financial crisis or it appears too heavy-handed, stifling any chance of robust economic recovery with a stranglehold of regulation and oversight.

The bottom line is that it’s going to be a while before the average American is out of the woods—in fact, those woods are probably going to feel a lot like a darkening wilderness before the Government reaches some consensus. My advice? Take matters into your own hands.

You know the basics, otherwise you wouldn’t be here reading this. Distressed property owners: there are people out there who are in a position to help you long before Washington or a recovering economy tosses you a proverbial lifering. Foreclosure investors: There are people who need your help, and there is still an awful lot of profit to be made investing in distressed properties.

Like President Bush said, “I believe there ought to be action.” I just think that action is going to have to come from the people.