Paul Michael wrote a blog venting his anger about the bailout to help the homeowners that face foreclosures. Personally, I share his feelings. We can’t just award the irresponsible speculators that gambled with the real estate market. But, it’s just beyond us. Everything went out of control, bailout is the only way to protect whatever is left in the economic crisis.

You don’t need to stop mortgage payments to get the help from the banks. Citibank recently announced that it would help the homeowners even if they haven’t defaulted on the payments yet. More on this here. Other banks like Bank of America also announced the same measure to renegotiate the payment terms with the borrowers. If you feel that you need some help in your mortgage payments, call your lender and ask to reduce the monthly payments. If they don’t agree, check with Citibank, JP Morgan Chase or Bank of America whether they can refinance at the better terms. Odds are in favor of you.

Related Link: Worst is yet to come… for Real Estate

American financial crisis is now global. Property market in U.S. will take some more time to see the light. Commercial property markets are taking more hit. Office vacancies are rising across the country. Though sale prices and the number of properties sold have plummeted with the deteriorating credit markets, as they have nationwide, the metro commercial-sales market was still one of the most liquid in the U.S.

Companies are cutting costs wherever possible. Entire development team is laid off in a Seattle company few days ago. Some companies are terminating the leases of big offices and moving to smaller offices. Startups are moving back to the garage. It’s estimated that 10 million square feet of office space will be back on the market and office rents could decline by as much as 25% in the next 12 months.

Many real estate analysts expect jump in foreclosures of commercial properties in the next 3 months. It looks like that low interest rate environment is not helping much when there is so much fear.