Is Being A ' Boomerang Buyer ' A Strong Choice?

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

Homelessness affects upwards of 3.5 million Americans annually and has been a historical problem since the 1700’s (Cronley, 2010). People who are homeless do not always choose the situation they find themselves in, but to be more precise, are the victims of a social system that neglects to help them with they first become at-risk of becoming homeless (Edison-Brown). According to the Joint Studies for Housing Studies (2017), almost thirty-nine million American households are living in homes that they have difficulty meeting the required funds to pay for monthly. To illustrate, a person who has a rental home, on average, needs to earn $21.21 per hour to afford a two-bedroom home in the United States (Family Promise, 2016). The poverty line for a family of four is at $24,300, and for someone to achieve that line, they need to be earning at least $11.70 per hour

            Most homes are structured to have multiple bedrooms and multiple baths. This is very fitting for families, but is unfit for young adults just getting out of college. Most millennials have followed the trend of attending college longer than the past generations have, and after they are done they make it a goal to find a career first before settling down with children. While they are busy doing that, they usually rent apartments because a house is too big for them to live in alone, or with a significant other. Until prepared to have children, most millennials chose the renting lifestyle so that they won’t be tied down to a place in case they want to make time for travel, or their career pushes them into another part of the country. Buying a house symbolizes settling down in an area and often means that the couple is prepared to have children. However it is not a priority until college is completed and a career is established, meaning purchasing a house doesn’t typically happen until people are in or close to their thirties.

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

Growing up in rural North Carolina, many people settled for simple lives. Accordingly, there were no top executives or fancy cars in my town, but content. This would all be fine if families were financial stable, but they are not. For example, the workers on our farm were always calling to see if they could go ahead and get paid even if it was only twenty dollars. Residents of our rental homes seemed to always be behind on their rent and my parents were forced to evict them. It was almost like a revolving door with renters in our houses. Unfortunately, this is far too common not only in the South, but in the world. As a result, my parents made sure my sister and I understood how to combat financial insecurity early on by

Here in Hawaii it is pretty hard to live on your own. It is a very expensive place to live because we revolve around tourism which makes it such an expensive place. I come from a family that is not wealthy and tries to make it every day. I perhaps have been in the position where my family did not have a place to stay but my parents would still provide for our family.

Mama and her late husband had moved into the apartment, the family is still living in, when they had gotten married. They had planned to work and save up money to buy a house a few years later in their life, but the children had come along and things just didn't go as planned. After the death of

The Federal Housing Authority has put a similar plan together called the “Back to Work Program” which can help the buyer return to the housing market in as little as one year if the buyer is able to meet certain guidelines. The guidelines included in the “Back to Work Program” are: the buyer must pay their bills on time, had a 20 percent reduction in income, and a minimum credit score of 620. The “Back to Work Program”, has strict guidelines to make sure that the buyer is responsible, they must pay their bills on time and cannot miss one payment, or else they will be ineligible for the program. The 20 percent reduction in income must be demonstrated to be in the result of loss of employment and the reduction in income must be for a duration of 6 months. The Federal Housing Authority primarily requires the boomerang buyerthat is purchasing a home to have an hour long credit counseling session with the Department of Housing and Urban Development, after the session is completed a plan is created for the buyer.

The typical series of big events in life include graduating high school, going to college, finding a significant other, graduating college, getting married, and buying a home. Although these events happen in a variety of different patterns nowadays, a major bump in the road is occurring when looking to buy a home, especially in Colorado Springs. This article highlighted the challenges that the millennial generation is facing when reaching this stage in life. "Student loan debt is more than $1.2 trillion, and nearly 70 percent of college graduates have some student loan debt, according to the Federal Reserve (pg 1)." These college graduates now need to add loan payments to their monthly debts, leaving them with even less disposable income. Not

Demand for jobs decreases and the cost of housing in America continues to rise, making it hard for people to afford it. According to United States Home prices and Values, the median home value in the United States is $182,500 and the cost of housing has increases by 3.7% over the past year and predicts that the cost will increase by 2.4% within the next year. Clearly from this data, we can tell that people living below the poverty line are unable to afford the houses. Also, with their meager income, they have spent it on other things such as food, clothes, schools that are necessities for their survival other than housing. So many things to spend on with their income makes it impossible for them to make a decision and ended up abandoning their

There are some programs to help such as the Federal Housing Administration that gives people a second chance with a foreclosure or short sale of a home. Low interest rates and low down payments, it gives people another chance to become a homeowner again. The potential buyer still needs to cleanup their credit to make themselves worthy of another chance. Many of the former owners are renting, but still have desires and hopes of getting back into a home soon. This helps the housing market from the boomerang buyers, because they are moving out of rental units and back into homes.

To not have one really sucks and I could not imagine, but many people did not have one for a little bit. In 1945 only about 54% of people had a home. Which is over half the people, but that is still not very good considering 56% of people didn’t have a home and who knows where they were living. But it eventually got better, but not fast enough. In 1950 about 55% of people had a home and that’s only 1 more percent that went up in 10 years which isn’t good, it hardly even went up and it was 10 years, so over those 10 years many people were still homeless. But I 1960 it got a little better and about 61% of people had a home which finally over 10 years it went up more than 1%. It only went up from there which is good because more and more people were getting a house which meant less people on the

Since at least the National Housing Act of 1937, the standard metric for housing affordability has been 30 percent of gross household income. But for residents working low wage jobs or relying on modest fixed incomes from public benefit programs, paying for accommodation can take more than 80 percent of their incomes (Zippel 2016). This inability to afford and/or overextension of funds to sustain housing costs puts families at high risk for factors of housing instability, such as eviction, frequent moves, living in crowded or substandard conditions, and homelessness. Sudden forced displacement often initiates a downward spiral for families, as belongings are lost, jobs are forgone, and children’s educational attainment is interrupted. Moreover, this excessive devotion of funds to housing disables families from procuring other necessities such as food, transportation, health care, and child care. An estimated one in every five children in DC faces such

Homes are typically the biggest purchases the average American will make in her lifetime. The average home mortgage requires a down payment equal to 20% of the purchase price. The remaining amount is paid monthly throughout the course of 30 years, on average. This makes the home mortgage a substantial and constant monthly expense for the average homeowner. (Egrungor & Zaman, 3).

Maybe to them it will be simply easier than to pay off what might be required to pay for the house. Or maybe the dreaded mortgage of which we've all heard of will come to wreak havoc on our day. Maybe they do not want to deal with the little things that come with a house. Like a lawn or a yard that must be continuously maintained. Or the everyday simple problems that can arise in the household that otherwise the landlord would fix. But no matter the pros and cons of the ownership of a