The Foreclosure Crisis And The Housing Crisis Essay

The Foreclosure Crisis And The Housing Crisis Essay

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Have you had a home foreclosed on in the past few years? Were you forced into a short sale to sell your home. Was there a bankruptcy? Are you now wanting to know if you are able to buy again? Congratulations, you are a Boomerang Buyer!

According to Reality Trac, Millions of Americans who lost their homes during the foreclosure crisis are now poised to become homeowners again. They estimate that 7.3 million so-called "boomerang buyers" will return to the U.S. housing market over the next eight years. Over the next five years, the housing market will see around 1.5 million eligible return buyers jump back into home ownership. These return buyers, nicknamed 'boomerang buyers, ' lost their homes during the housing crisis, and they 've restored their credit and are ready to impact housing again. Since 2006, 950,000 of these former owners have already purchased a home again, and boomerang buyers will continue to be an important market for real estate professionals to target. “Now fueled by a gradually improving economy and the strong rebound in home prices, some of these former distressed owners have returned to the market, and more will likely become eligible in coming years," says Lawrence Yun, chief economist with the National Association of REALTORS®.
These days, many real estate and mortgage brokers feel especially fond of so-called rebound or boomerang buyers. The chief attraction is strong motivation. Foreclosures and short sales skyrocketed after 2007 during the darkest years of the financial crisis and Great Recession. But with the economy gaining momentum and hiring picking up, many foreclosed on homeowners are in a position to buy again.

Some builders have a growing interest in reaching out to these “boomerang” for...

... middle of paper ...

...e home, you could be taxed on the difference.
In 2014 Fannie Mae and Freddie Mac introduced mortgage loan programs that require just a 3 % down payment for creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. In addition, the new offerings will also include homeownership counseling, which improves borrower performance.

Legally, a foreclosure can stay on your credit report for seven years. But life after foreclosure doesn’t have to be all bad news. Homeowners who fell behind on their mortgage payments and defaulted on a loan should not only try to improve their credit before facing a foreclosure eviction, but can do a lot in improving their financial life after foreclosure. The housing crisis certainly hit home the fact that homeownership is not for everyone.

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