Boomerang Buyers
Almost ten years after the wave of real estate foreclosures, many who lost their homes have rebuilt their credit on paper and are back in the market. Experts say these boomerang buyers will be an important ripple in the real estate market in the coming years. Boomerang buyers: a term coined by the Wall Street Journal, are people who lost a home to foreclosure but are now ready to buy again.
“About 700,000 of the 7.3 million homeowners who went through foreclosure or short sales during the bust have the potential to get a mortgage after foreclosure this year, said Daren Blomquist, vice president at RealtyTrac. That compares with the 3 million people overall who got a mortgage between October 2013 and September 2014.”
Boomerang buyers
Some boomerangers had to wait as little as 12 months after foreclosure, short sale, and even bankruptcy. That’s not even enough time for a good doze. If they had good credit before their troubles and had no problems after the event, they can re-qualify.
“FHA loans are easier to get after a short sale,” says Steve Cohen, a senior mortgage banker with Talmer Bank and Trust in Rockville, Md. “In fact, some borrowers don’t have to wait at all if they never had any late payments on their mortgage. Borrowers who were in default on their loan have to wait three years to qualify for an FHA loan.”
That is why it is essential that you not ignore warnings of financial trouble, especially a late payment on your mortgage
Making your credit payments on time is one of the biggest contributing factors to your FICO credit scores. Here’s a tip to being on time: Set up reminders for making payments or switch from paying by check to automatic bank debits to each creditor.
Another tip to keep your FICO credit score high: Get out of debt. Reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Then come up with a payment plan that pays off the cards. Once credit card debt is gone, build an emergency fund equal to six months living expenses. Finally, save large amounts of money going to interest by paying off your mortgage early.
Even personal bankruptcy may not be a hindrance for some loans. Refinancing a mortgage after foreclosure remains possible if the bankruptcy has not been discharged and your credit history has been good, meaning you made all timely payments to your trustee.
You made a mistake
You got knocked to your knees in the bubble, but this is America. Americans rooted for the underdog and changed the rules so you can get a mortgage after foreclosure. We want you back on your feet. We need your consumption.
Harmony Property Solutions, LLC is here to help homeowners out of any distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple, truth about your home and how we pay cash for houses Cedar Rapids.
Harmony Property Solutions, LLC is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help, and we can do it quickly!
Give us a call today at 319-343-6773 to let us know how we can help YOU.