Fannie, Freddie and the Future

South Florida homes have been among the hardest hit markets as a result of the continued problems affecting the country’s housing industry.  As 2007 wound down and 2008 emerged, several news headlines gained lots of exposure as the government devised solutions to fixing the situation which were, for the most part, fruitless.  While many speculated it would happen, many were caught by surprise when the government took the bold decision to try and prevent the situation from getting worse by bailing out Fannie Mae and Freddie Mac, the two largest mortgage lenders in the country.

Now the bailout was definitely something that most would have wanted to avoid but it’s happened and now all eyes have turned to what outcome this will have.  Some say it’s going to make matters even worse while others say that it could actually yield positive opportunities.

For the time being, struggling homeowners aren’t going to be seeing much breathing room from this.  The people most likely to benefit from the Fannie Mae and Freddie Mac bailout may be first time homebuyers interested in purchasing Miami real estate as this bailout could yield more flexible financing opportunities when applying for a new mortgage loan.

Buyers interested in purchasing Miami Beach waterfront condos should be aware that the application process is still going to remain very selective and lenders will be scrutinizing potential borrowers intensely before approving a mortgage of any sort.  However, buyers may be able to work out better monthly payments with lenders which could spark a little more buying reassurance among hesitant consumers.

The whole Freddie Mac and Fannie Mae bailout is a very sensitive issue and right now it’s still too early to see whether this was a wise decision or major governmental blunder.  Investors will likely have a small degree of reassurance knowing these two lenders are now in the hands of the government.  What do you think the future holds?