Implementing The Transition Into Successful Homeownership

1201 Words5 Pages
During the last fifteen years, the housing market has been through a lot. For many, what appeared to be an investment in their future turned into a ruinous mistake when the housing bubble burst. In 2011, nearly four million homes were foreclosed upon in the United States. Three million, nine hundred twenty thousand, four hundred and eighteen families and individuals lost their homes to foreclosure. Since then, the economy has begun to repair, and foreclosure rates for 2014 are projected to be the lowest they have been since 2007. We are starting to heal, and the people who suffered most are starting to look for a second chance. These “boomerang buyers,” who experienced foreclosure and are looking to buy again are becoming a valuable part…show more content…
Loans are financed by a limited number of financial institutions, all of which require foreclosed homeowners to wait a number of years before being approved for a new loan. For Fannie Mae and Fredde Mac, that means seven years of waiting before they’ll agree to consider backing another loan. However, the Federal Housing Administration (FHA) recognizes boomerang buyers as an opportunity. These are people who have suffered and learned their lesson, and in many cases are interested in cautiously rejoining the real estate market with a new perspective. With that in mind, the FHA has recently launched the Back to Work loan program, which provides financing for previously foreclosed buyers as soon as a year after their foreclosure. If borrowers can document a reason for their previous foreclosure, such as a sudden loss in household income, and demonstrate that they have been otherwise responsible with their credit, FHA is able to provide options. In addition, the Legislature recently passed a law protecting homeowners from lenders. Now, borrowers are able to halt the process of foreclosure and confront the lenders, allowing any misunderstandings to be repaired before serious consequences arise. Together, these new steps will help those previously failed by their real estate choices to transition into healthy homeownership.

For those hesitant to enter into a mortgage so soon after their foreclosure, or those unable to qualify for a loan
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