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...
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...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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- In 2008 the housing market took a turn for the worse and many lending agencies such as: Freddie Mac and Fannie Mae knew that the unusual surge in home buying was going to eventually come to an end. In 2008, banks in the U.S. repossessed more than 850,000 properties and about 404,000 properties in 2007. Countless family’s loss their homes because they were approved for a mortgage that they could not afford after the economic downturn jobs were loss and banks foreclosed on countless homes. As of today, the housing market is on the upturn and the victims of the foreclosure crisis are beginning to find new hope.... [tags: Subprime mortgage crisis, Mortgage]
1181 words (3.4 pages)
- The housing foreclosure crisis is a complicated matter with heart wrenching implications for those who have lived it and sobering moments of introspection for those who have not. This problem was decades in the making and has more than enough villains to go around. Casting blame is pointless - it is time to move forward. The housing crisis has created economic problems beyond just housing, the economy as a whole has been severely affected. Remedies for specific economic segments will not be sufficient.... [tags: Economics]
1208 words (3.5 pages)
- The word “foreclosure” wasn't in my vocabulary until about three years ago. To be really honest, other than seeing it written on real estate signs, I never even thought about it. Then my parents began discussing the real estate crisis at the dinner table. The word “foreclosure” became suddenly more familiar. Unfortunately, so did the words “short sale” and “bankruptcy”. But what options does the the homeowner who faces loosing their home have. How can the federal government or financial institutions help.... [tags: Foreclosures,]
1087 words (3.1 pages)
- Thomas Jefferson once stated, "If Americans ever allow banks to control the issue of their currency, first by inflation and then by deflation, the banks will deprive the people of all property until their children will wake up homeless." Although Jefferson’s accusation seems ludicrous at first glance, today’s foreclosure crisis lends itself well to such resonant words. The current disarray of the United States’ economy and housing market is terrifying. With banks going bankrupt and fewer Americans being able to pay their mortgages, the question must be posed: how will we ever survive this foreclosure crisis in America.... [tags: real estate]
1099 words (3.1 pages)
- The foreclosure crisis in America can only be resolved by every American citizen working together to build a stronger America by changing the way we make decisions for expenditures in our lives. We must stop overextending ourselves beyond our economic means. The foreclosure crisis of America has been caused by Americans borrowing money to purchase a home that they cannot afford. Lending agencies have allowed Americans to borrow more money to buy a home than they can afford. Each lending agency seemingly used logical reasoning that if they did not lend the funds to the homeowners, another agency would.... [tags: Economics, Mortgage, Housing Crisis]
1887 words (5.4 pages)
Proposed Options for Solving the Foreclosure Crisis through Public Awareness and Tax Break Incentives
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979 words (2.8 pages)
- How to Solve the Foreclosure Crisis The subject of foreclosure is one that I know too well. I am currently trying to get my house out of foreclosure. It is not that I have not been in contact with Countrywide (now Bank of America), I have been in contact with them since July of 2008. I even signed a Modification Agreement in March of 2009. I thought that everything was okay. I sent all the paperwork in, signed and notarized, along with all of the financial information I was required to include with the Modification paperwork.... [tags: Economics, Mortgage, Housing Crisis]
1265 words (3.6 pages)
- How to Solve the Foreclosure Crisis Imagine a young couple was married and bought a house together. They were happy they made an investment together that they would never regret. A few years later, the company the husband worked for suffered critically by the recession and he was one of the hundreds of people who got their job cut. They now have two babies to feed and have to choose between food and the mortgage. They soon began to miss their monthly payments. They waited until things became unbearable to negotiate the loan or an extension to repay the bank but their efforts failed.... [tags: Economics, Mortgage, Housing Crisis]
1286 words (3.7 pages)
- Due to the recession that our economy has recently experienced, American consumers are currently undertaking serious financial problems. Such difficulties are obvious in real estate, with homeowners having to deal with a major foreclosure crisis. According to studies by the Mortgage Bankers Association, one out of every 200 homes will eventually be foreclosed, and 250,000 families enter into foreclosure every three months. Although the worst times are still in our future, with help from the United States government, we as citizens will eventually overcome the horrendous situation of America’s current real estate market.... [tags: Economics, Mortgage, Housing Crisis]
1271 words (3.6 pages)
- “How did we get ourselves into this mess?” This is the question I’m asked by clients of mine who don’t understand what happened to the housing market and want to know how and when we’re going to recover. Most people understand that the real estate market is cyclical. It’s always had its up’s and down’s. Fellow Realtors of mine who have been in the business for thirty plus years have often said “this is worse than they’ve ever seen it”. We often find ourselves in friendly debates of what we think it’s going to take to “fix” things.... [tags: Economics, Mortgage, Housing Crisis]
1555 words (4.4 pages)