The term “boomerang buyers” has been coined to describe the millions of Americans who left their homes through foreclosure or a short sale and are now re-entering the market looking to once again purchase a residence. This has in part fueled the recovery of the housing market. The largest component needed for these buyers to qualify again is simply letting enough time go by from the date of the property transfer. Most people who went through foreclosure must wait three years before qualifying, while a short sale is more commonly 2-3 years although in some extenuating circumstances a short sale may not preclude a buyer from buying again immediately. For most of these individuals and families the transition from home ownership to renting has not been easy and many aspire to once again own a home. Some people who experienced job loss, wage reduction, etc. are prime candidates to make good future homeowners. Making the boomerang buyer even more motivated have been low housing prices and record low interest rates.
Loan programs targeting these boomerang buyers have been popping up for awhile. Qualifying today for these buyers is still a stringent process, although its very feasible for most once enough time has passed and they meet traditional qualification criteria. However, there is absolutely a segment of buyers who were shaken by the traumatic experience of going through a home loss. Some of these buyers must overcome the psychological factors before returning to the home buying market, as many are afraid it could happen again if circumstances deal another painful blow. Already though buyers have been returning and more are anticipated over the next few years.
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