Only three and a half months left in 2008 and the real estate market situation is still cloudy.  This year did see some noble, albeit mostly fruitless attempts at fixing what ails the real estate market but none of those were as lofty as the recent action the government took to step in and bailout Freddie Mac and Fannie Mae, the country’s two primary mortgage giants.

This news may have restored some faith in what’s to come for the future of real estate but it unfortunately does very little to assist individuals and families who live in South Florida homes and are barely managing to keep up with mortgage payments in a market that’s not doing too good.  This news is still recent and the bailout is just getting underway so perhaps this may actually bring about some positive news for a change.

The people most likely to reap the benefits of this bailout will be first time homebuyers.  Buying real estate in neighborhoods like South Beach usually means a high mortgage rate and stiff financing requirements. Combine that with understandably stringent lending practices and it’s a little easier to see how this bailout could actually work in a homebuyer’s favor should they ever decide to buy high end property such as Miami Beach oceanfront condos.  Mortgage application requirements will remain rigorous but borrowers may be able to negotiate better financing.

This bailout obviously has its sizeable long term risks but at the same time it instills some degree of confidence knowing that the government is now overseeing Fannie Mae and Freddie Mac’s operations and preventing an already tricky situation from getting worse, which should go a long way with mortgage investors.  We’ll have to wait and see exactly what comes out of this mortgage bailout but at least there is the possibility of providing better buying opportunities for people who have wanted to own a Miami Beach condo home of their own.