Benefits Of Going Down The Rent

However, hope might be on the horizon for the victims of the mortgage disaster of 2007/2008. Home buyers who were foreclosed upon years ago, or boomerang buyers, are beginning to be eligible to buy homes again. While some feel hope after feeling bamboozled by lenders and Fannie Mae and Freddie Mac, some feel anxious and fearful of the thought of buying again. Yet there are lessons that have been learned by the mortgage meltdown. Fannie Mae and Freddie Mac provided a lesson for the

Why would these Boomerang Buyers want to jump back into homeownership and at what cost would they “buy” another home? It’s understood that the American Dream of homeownership runs deep in the American belief system. Even people who have experienced foreclosure in the past, still dream of owning another home of their own even BEFORE they move from the foreclosed home. Why is this so important to Americans? The answer is partly based on marketing and myths that have been around for many years. The ability for one to create a pathway back to homeownership is varied and like many things, has potholes along the road. From predatory lenders to landlords who participate in rent to own or owner financing

The economic decline has possible home buyers, especially first time home buyers, scared to invest anything into the housing market. With the fear of another depression in the back of everyone's minds, some businesses are attempting to clarify the pros of home ownership.

The desire for home ownership is something embedded in our DNA. Claiming property and owning a house is a critical part of the “American Dream.” Home ownership represents more than just a place to rest your head at night. Your home is the environment that serves as a setting for your journey through life. It’s the place of your children’s first steps, family birthdays, barbeques, amongst many other significant events. Your home is the backdrop that describes you and your family. Although many American’s were financially hurt by the trillions lost in the home equity market during the housing bubble, there is and will always be a desire to own a home. The most vital part is that American’s who lost their homes during the crash, learn from their past, so that they do not repeat a foreclosure.

Renting to own is a viable option for many financially-stricken Americans by eliminating the high costs of down-payments. Renting to own allows the seller to lock in a sale price while renting to another party, usually a small amount higher than a mortgage, but it allows the buyer to rent the house under contract until ready to purchase. The process keeps the seller from paying multiple mortgages without income, and it benefits the buyer by giving a viable alternative for home ownership instead of traditional

When the Stock Market crashed in the late 2000s, millions were forced to leave their homes by means of foreclosure. Now, after many hardships, the economy is on the rise; and the housing market is making a comeback. Its previous victims are beginning to recover and start fresh in this young economy. The low interest rates and surplus of homes have made the once expensive houses more affordable to those who are seeking to restart. Although these “boomerang buyers” are able to afford these homes, their past record of foreclosure has hurt their credit score which makes it difficult to acquire loans in this cautious market. However, there are several steps such people can take and many methods they can

Giving possible tenants the option to rent towards owing is a great way to get the housing market back on track. People who are struggling financially cannot afford to just buy a home. Allowing people the option to rent towards buying, takes some of the stress off the tenants and allows longer time to come up with the money, which means less people getting evicted or foreclosed on. The less people that are foreclosed on, the better the market for homes will be. Currently the market is great for anyone who is financially stable to purchase any home that has a foreclosure sign out front. If the option “rent-to-own” was made more available the people looking for homes, then it would allow them to save more money until they were financially stable to either buy the home, or move to another affordable location.

Owning that little home on the corner with the white picket fence and big oak tree in the front yard has always been the American dream, but for some unfortunate home owners hit by the recession and housing crisis several years ago, it now seemed more like a nightmare. Imagine, after years of hard work, finally having your very own home only to have it ripped out from under you through foreclosure or short sale. This very scenario happened to countless thousands in towns across the country.

Following the 2006-2008 housing market crash, 4.8 million of homeowners lost their most valuable assessment to foreclosure, and another 2.8 milliongave up their homes in short sales. These former homeowners that are reentering the housing market after losing their homes during the housing market financial crisis are now part of a wave of “boomerang buyers.” According to Real Estate experts, boomerang buyers who are returning to the market were at least 10 percent of all United States home purchases during 2014. More important, this trend is expected to increase in 2015 and 2016 as more boomerang buyers become eligible for new options to get their dream homes again. The unquestionable fact is that a great majority of boomerang buyers are hardworking, honest people that got caught in the middle of one of the biggest housing crisis that occurred in the last 100 years. Fortunately, those housing crisis’ victims are beginning to see the light at the end of the tunnel since several options are becoming available to them in order to get back into home ownership. Among these options, I like to explore some available avenues for those boomerang borrowers to include the rent to own option, Veterans Affairs backed loans, and owners financing option.

A few years ago our country went into a foreclosure crisis. Millions of families lost their homes when the housing market crashed but now they are back. These buyers returning to the market are boomerang buyers. Currently there are now 729,000 household that were foreclosed during the bust that are now eligible for a mortgage. There are multiple strategies for buying a house after a foreclosure. In all of these strategies the families must be determined and hard working. The first is the rent to own option.

The availability of affordable housing stock may, therefore, be an issue. Furthermore, there is also the thorny issue of credit availability to consider. According to the Mortgage Banker’s Credit Availability Index, access to mortgage finance reputedly became more difficult in June for the eighth successive month, despite conventional mortgage rates remaining low. Meanwhile, the strength of new home sales in the high-end segment comes against a backdrop of a growing spread between jumbo (in excess of $417K) and conventional mortgages to their widest level since March 2011. Despite continued falling mortgage rates, the behaviour of this spread suggests risk aversion prevails amongst lenders.

The last five years have been a rollercoaster for the average American homeowner. I personally know many people who were unable to keep their homes. Most of the reasons were extenuating- loss of job, decline in business, death of family- ultimately resulting in no longer being able to afford the mortgage. Unfortunately there were some very irresponsible decisions that contributed to the foreclosure of homes, for example, financing huge second and third mortgages to pay for frivolous activities and items. With the last half decade of hard lessons learned for previous home owners many are looking to venture into the market again with some more creative financing options. Many sellers are turning to options such as rent-to-own or seller carrying the contract with a down payment as well as buyers borrowing against existing retirement and life insurance accounts.

Brooklyn, NY – December 30, 2009 Foreclosures continue to rise drastically across the United States due to the recession, and have effected, and continue to affect thousands of families and individuals every day. One aspect we must take into consideration is that most people are not informed of what foreclosure means, or the process, even those who are homeowners. I believe that one step to preventing foreclosure is to educate first-time homebuyers. In addition, first-time homebuyer programs should not only assist potential buyers with financially preparing them to buy a home, but to keep the home once

Around 2006 the price of houses began to fall substantially fast. “The oversupply of houses and lack of buyers pushed the house prices down until they really plunged in the late 2006 and early 2007” (The Subprime Mortgage Crisis Explained). These actions threw investors into a big dilemma. In the beginning they believed buying the mortgages would bring them a profit, but quickly realized that the mortgages would cost them more financial damage than reselling the homes. “Nationwide, home vales have declined about 16% since the summer of 2006 and experts project that the drop will continue until homes have lost about 25% of their value” (Biroonak, 2008). In other words mortgage homes are “underwater”, that is, the mortgage owed equals or exceeds the value of the house (Biroonak, 2008). Investors and homeowners started to go more in debt trying to pay off their original debts.

Establish Credibility: According to US News, the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta, and Cleveland, buying has become more affordable than renting.” I think the mortgage catastrophe of 2001 left prospective home buyers afraid of buying a house without being extremely certain that is the right decision.