Boomerang

The housing crisis of the late 2000s rocked the economy and changed the landscape of the real estate business for years to come. Decades of people purchasing houses unfordable houses and properties with lenient loans policies led to a collective housing bubble. When the banking system faltered and the economy wilted, interest rates were raised, mortgages increased, and people lost their jobs amidst the chaos. This all culminated in tens of thousands of American losing their houses to foreclosures

However, as rental rates continue to increase and the economy recovers these same families now see possibilities of home ownership again. The housing market has characterized the buyers as “Boomerang Buyers”.Approximately 5 million people lost their homes to foreclosure or short sale and become potential boomerang buyers. Quietly, by buying homes again, these buyers

they must undergo housing counseling before they can be approved for the loan. Many boomerang buyers who have worked hard to rebuild their credit score over the last few years have just taken out an FHA loan. An FHA loan has a three-year waiting period, currently a 3.5-4.0% down payment, and a minimum credit score requirement of 640, as well as monthly mortgage insurance payments.A considerable amount of boomerang buyers and even first time buyers have just taken out an FHA loan, intending to refinance

Statistics say, “79% of boomerang buyers are interested in buying a house again... 41% report that their income is higher than when they 1st purchased.” (www.tucson-property-management-companies.info) These buyers obviously have to rebuild their credit and endure the waiting periods that lenders require before reviewing their financial status for another mortgage. Waiting periods could range from twelve months to as long as seven years after a short sale or foreclosure, depending on the lender and/or

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. Rent-to-own is an option that helps the seller and the potential buyer by allowing the potential buyer to save some money and secure the loan or funds they need to actually

of their personal homes drop like they did in the past few years. They had never experienced the financial pain and although only a few years have passed, many have forgotten and are ready to jump right back into homeownership. 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

reenter into the home market as buyers. These boomerang buyers might just benefit withthe option of rent-to-own amongst other options. Advantages to Boomerang Home Buyers Although many homeowners were affected and lost almost everything, there’s hope for them to move forward with the rent-to-own option. This lets the buyer commit to an agreement with a willing seller to lease the property until they can buy it. The rent-to-own option is appealing for boomerang buyers with many different backgrounds. The

Three summers ago, I went to Knotts Berry Farm with my sister and her friend. When we first got there we had trouble figuring out what ride we wanted to go on first. “Let’s go on ghost rider first” I said. They both stopped for a minute to think about but then my sister Diana said “Nah we’ll go on that one last.” I said “Alright then, which one should we go on first ?” Olga, my sister’s friend suggested Silver Bullet. “Let’s go on Silver Bullet it’s like right here.” Then we all agreed. So we walked

When the housing bubble burst in 2007, 7.3 million borrowers lost their homes due to foreclosure or short sale. These “boomerang buyers” are slowly but surely recovering from financial setbacks and reentering the housing market. Conventional lenders have seasoning requirements that prevent buyers from obtaining a new mortgage until they have repaired their credit: a seven-year window for foreclosures and four years for short sales. In 2007, there were over 1.28 million foreclosure filings. The number

For many years, the idea that ones’ home being the largest investment was said as a complete sentence when in fact, it was only an incomplete sentence. Any duly licensed financial planner would finish that sentence by saying all investments are subject to market conditions, the value that investment could increase or decrease and other similar cautionary statements that their attorneys wrote to protect them. The American public only heard that their home was the largest investment and had never