By: Realtor And Attorney, R. Sebastian Gibson

There is usually little to be gained by attempting to find someone to blame when a calamity such as the current housing crisis occurs. Even if one were to determine exactly what was done wrong, there is little chance that by the time another such crisis is about to occur, that such a determination will be remembered or have any value.

Indeed, what may be about to cause the world’s next depression, is quite unlike what caused the depression of the 1920s.

However, if the depression that is already occurring in the housing market can be prevented from spreading to the general economic market and to the rest of the world, an analysis can be useful if it shows what might be utilized to prevent matters from becoming worse.

First, everyone knows that much of the cause of the current housing crisis, liquidity crisis and sub-prime mess that we are in that is causing real estate sales and prices to plummet, financial institutions to write down billions and which is now causing a general slowdown in the rest of the economies of the world, can be laid to rest at the feet of unwise and improper lending practices. Fixing those lending practices, while useful for the future, won’t prevent this recession from turning into a depression or some other unwise practices from causing a different depression far off into the future.

Who could have prevented such lending practices from causing this economic mess that we find ourselves in? Certainly, a number of entities, from the Federal Government, to State Governments, to Departments of Real Estate in the various states, to regulatory agencies overseeing mortgage lenders, to the banks and lenders themselves and the financial institutions and brokerages who foolishly invested in sub-prime investments themselves.

But as this article is being written this 21st day of January, 2008, stock markets from Asia, to Europe, from China to Latin America and Canada have fallen overnight from 5% to 8% and the U.S. stock market is expect to open on the Tuesday following the Martin Luther King holiday over 500 points below where the Dow closed before the three-day weekend began.

So what is causing the world’s stock markets to tumble. Fear, of course. In this case, the investors fear that the President’s stimulus plan to jump start the U.S. economy will be too little, too late to do anything to prevent a recession. And if the U.S. market goes into a recession, the argument follows, the world’s markets may follow suit.

So if a stimulus plan to put $400 to as much as $1,600 into the hands of most or all U.S. taxpayers will not prevent a recession, what will. The Federal Reserve has as much as already guaranteed that they will reduce the federal funds rate by 50 basis points, but in the week since they made this clear, the market has fallen every day in the U.S.

Some have suggested an unprecedented and immediate lowering of the federal funds rate by 100 basis points. Still, the federal reserve has appeared reluctant to move in such dramatic steps, preferring not to either look panicked or use up one of the few remaining items up it’s sleeve, the federal funds rate and the federal discount rate. Because, once the federal reserve takes its rates down that fast, there won’t be much if anything left in the aspirin bottle, and according to some economists, such moves could make matters worse. Others have argued that the federal government should take over the bond insurers themselves. While that might put out that fire and prevent their situation from harming the market further, the markets around the world still seem headed down with their ships taking on so much water so quickly.

Many are saying that the federal reserve and the federal government are behind the curve. That they are simply reacting and reacting too late, rather than being ahead of the curve and taking steps that will prevent the problems in the financial markets from becoming worse.

Clearly, the federal reserve is acting to put out some pretty nasty fires. Just when you thought the banks and other financial institutions were in enough of a predicament, and that some were just escaping bankruptcy by vast infusions of money from the sovereign funds of other foreign countries, now the risk of bankruptcies or credit rating deterioration of the bond insurers is causing a whole new set of problems.

It may be time for the federal reserve and the federal government to act now as if this country is already in a depression, before it is and solving that mess becomes a bigger problem. One bold solution would be to create a massive jobs and public works program much like was done after the depression of the 1920′s.. This country’s bridges, roads and the rest of its infrastructure is in dire need of repair. So fix the infrastructure and put the country to work doing it.

With so many contractors and laborers who were previously employed in the construction industry out of work, put them to work as well as millions of others in renewing and replacing this country’s infrastructure. Determine how many billions or trillions of dollars it will take to solve one of this country’s biggest problems and solve it by preventing a depression before one takes effect. If we need some money for the project, then by Executive Order or by act of Congress, roll back all of the pork projects Congress has voted for in the last eight years alone, and we may have money to spare. If that’s not enough, pull our troops out of harm’s way. If that’s not enough, stop using tax money to pay for election advertisements. If that’s not enough, get rid of some government agencies once and for all. Because if we don’t stop this spending taxpayer money on pork projects instead of fixing what’s wrong in this country, a lot more things may go wrong. As some would remind us, as bad as things get, they can always get worse.

Sebastian Gibson is the senior lawyer with the Law Offices of R. Sebastian Gibson. He is also a Realtor and the owner of Sebastian Advertising, an advertising agency. More information can be found at his web sites, www.SebastianGibsonLaw.com , www.CaliforniaAttorneysLawyers.com , www.SebastianGibsonProperties.com , and www.SebastianAdvertising.com .

As a postscript, the federal reserve lowered both the federal funds rate and the discount rate by 75 basis points on January 22nd, but the Dow still fell 128 points, the Nasdaq 47 points and the S&P fell 14 points.

Construction defect lawsuits in California are usually brought as a result of the negligence or incompetence of a builder or other workmen employed in the construction industry.
A home with a construction defect can suffer from problems in the foundation, water intrusion and/or resultant toxic mold, paint, stucco or any number of other construction problems.
A person’s home is normally one’s largest investment. If the home you have mortgaged is suffering from construction problems that you know about and must disclose when you sell the house, the loss suffered can be enormous.
From the standpoint of the licensed and conscientious builder or individual craftsman, there is nothing worse than being dragged into a construction defect case as a defendant due to the negligence or profit-driven actions of another defendant.
Sadly, however, as the real estate market suffers, developers trying to save a dollar, may find it more and more enticing to take shortcuts, hire unlicensed subcontractors, use cheaper and less experienced workmen and focus on the exterior appearance while skimping on the structural aspects of a development.
When such lapses in judgment result in injuries as well as damage to the home, the plaintiff may have not only a construction defect case for the damage caused to the home, but also a personal injury case for their bodily injuries such as when a house fire cause by improper wiring results in injury or death.
If other home buyers in your same development have similar structural problems, you and your neighbors may have a class action case or at least a case in which you can join as co-plaintiffs and share the costs of litigation.
If the construction defects are in the form of environmental pollution in your home such as that caused by toxic chemicals or materials in the construction of your home or due to toxic mold caused by water intrusion, air pollution, or soil pollution, you and possibly your neighbors as well may have a toxic tort case.
If you think your home was improperly built, has a construction defect or believe that you may be suffering injuries from the environment in or around your home, call the Law Offices of your construction defects attorney.

Sebastian Gibson is a practicing personal injury attorney represents clients throughout Southern California Lawyer from his main offices in Rancho Mirage, California representing Motorcycle/Vehicle Accidents, California Wrongful Death Lawyers

Many high quality manufactured home developments were first developed as rental or lease communities and later through the resident or homeowner association efforts or through owner determination, the development was converted to resident ownership. One of the most popular methods of park conversion was through a condominium plan. Unfortunately the legal verbiage in the condo plan inadvertently excluded manufactured home communities from certain types of financing, specifically FHA insured loans or loans that would ultimately be sold to the secondary market. This often compromised the very heart and soul of the manufactured home market—either the first home buyer or the retirement owner. Without appropriate financing the first-time home buyer was unable to secure the best source of dollars available and the senior was unable tap into his/her nest egg by virtue of a Reverse Mortgage. A reverse mortgage lets homeowners 62 years or older borrow against the equity in their property. They can take the proceeds as a monthly check, lump sum or line of credity. Instead of making payments to the lenders, as with a traditional mortgage, the lender pays the homeowner. The loan is repaid with interest when the borrower sells, moves or dies.
The understanding of manufactured homes and their associated communities by the highest level of FHA and HUD officials as well as our political leaders in Washington was also flawed. Rental parks that converted to resident ownership through the condominium process were viewed on paper as developments with lower quality homes. In reality, these are developments like Rancho Carlsbad and Champagne Village (just two parks to cite examples with golf courses, enviable locations and amenities with home prices in the $300,000-$500,000 range. Far from substandard.
On March 29, 2007, H.R. 1852 (the Expanding Homeownership Act of 2007) was introduced into the House of Representatives by Congresswoman Maxine Waters (D-CA). The bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs. Passage of a compromise version by both houses of Congress is expected to pass by the first quarter of 2008. When The U.S. Congress passes the FHA Modernization bill, this bill will bring the benefits of reverse mortgages and comprehensive mortgages to homeowners that have been excluded for too long. HUD officials have given assurances that the logistics will be implemented quickly.
Some of the logistical issues on a manufactured home are as follows to secure an FHA insured loan.
Proof that the home is newer than June 15, 1976
Engineer’s Certification that the home is on a permanent foundation and that any attached buildings to not impact the structural integrity of the home and that the skirting enclosure is HUD compliant.
Certainly there are other issues pertinent to the loan but without the two above, FHA financing cannot be procured. On The Level General Contractors can assist both in the engineer certification process or if necessary retrofit the home to meet the HUD Handbook 1996 guidelines.

Author Bio
ON THE LEVEL General Contractors (B & C 47 521400) is a family-owned company specializing in the maintenance and retrofitting of mobilehome and manufactured home understructures 433A permanent foundation contractors.