The uncertain real estate market situation continues on a very shaky path. As the government passed laws that did little to ease foreclosures, they continued to keep close tabs on Freddie Mac and Fannie Mae, two of the country’s major mortgage lenders. Chances are you’re probably aware that the government has now stepped in and chosen to bailout these two mortgage giants before things get any worse.
Miami real estate happens to be among the markets where things are a bit more difficult to say the least and this news of a bailout probably does very little for struggling owners of South Florida homes doing their best to contribute to the unusually high foreclosure inventory. Only time will tell what kind of effect this will have for them.
Potential first time homeowners on the other hand who’ve been wanting to purchase real estate of some sort in normally high priced areas like South Beach may be able to use this bailout to their advantage since there is a very good chance financing opportunities will be much more agreeable and actually obtaining a mortgage won’t be so difficult. For the time being however, buyers still need to come to the table with a spotless credit history and a dazzling credit score if they’re expecting to obtain a new mortgage for Miami Beach oceanfront condos or any other sort of high end property.
The good thing about government involvement is confidence. Now that Fannie Mae and Freddie Mac are under the control of the government, investors can rest a little more assured knowing these two companies have somewhat better long term prospects than the supposed “sinking ship” they were in before the government stepped in to take the reins. Is this just a taste of worse things to come and an additional burden on taxpayers or will the bailout finally bring about a slow real estate market renaissance?
Comments(0)