The Economic Crisis Of Boomerang Buyers

1478 Words6 Pages
Several years ago, the United States experienced an economic disaster like no one has ever seen before. This economic crisis left families devastated, broken and in disbelief as they were being escorted and locked out of their homes in the presenceof neighbors, families, and children. During the economic crisis, the current “boomerang buyers”were not able to meet their financial obligations, and as a result lost their homes to foreclosure, and many had to file bankruptcy.Purchasing a home with bad credit is difficult, but not impossible. As these foreclosure victims try to reconstruct their lives, it is imperative they reestablish good credit. Many “boomerang buyers” cannot have imaginedliving through an experience and years later, they…show more content…
Therefore, with distance (minimum two years) between the prior foreclosure event and locating a potential new home, the “boomerang buyer” is facing the opportunity of a lifetime to buy a home again(Martin). Current boomerang buyers” are opting to rent-to own as a possible way to procure a home.According to an article, entitled How to Buy A House Using A Lease, “Rent-to-own is a good option for foreclosure victims with poor credit” (MediaWiki).Rent-to-own “usually require buyers to pay extra rents each month plus up-front fees of about 5% of the purchase price. The regular rent then goes in owner 's pocket (presumably to pay the mortgage), but the additional payments are used to buy down the price of the home” (Christie). The buyer should save for a down payment, address credit issues and pay off existing debts before buying. Rent-to own afford the “boomerang buyers” time to assess their finances to figure out: • “If they have enough money to come up with the down payment;” • “If they have enough money to pay the mortgage;” • “If they have the income to invest;” • “If there is enough money to meet other expenses;” and • “Most importantly, if they plan to stay in the house.” (Christie) There are several benefits to lease options. During the period of the lease, the “boomerang buyer” has time to put their finances in order, thus reducing the stress of paying a mortgage. Also the prospective buyer has an opportunity to improve their credit profile; a longer-term
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