Boomerang Buyers: Don't Be Afraid to Buy a Home Again!

According to CoreLogic, from 2006 to 2014“there were 7.3 million housing foreclosures and 1.9million short sales.” The hesitation some Americans feelafter experiencing a foreclosure brings to mind the old saying:“Fool me once- shame on you. Fool me twice- shame onme.”

According to the 2019 Home BuyerReport from NerdWallet,

“Thirteen percent of Americans have lost a home due toa financial event such as foreclosure in the past 10 years. Morethan 6 in 10 of them (61%) have not bought a home since, and 20% ofthose who haven’t repurchased say they never plan toagain.”

This makes sense. They don’t want to go through the samepain again. As a cornerstone of the American dream,nobody wants to lose homeownership. But let’s illustrate thissimply: Recall learning to ride your first bike during yourchildhood. Did you stop riding it because you fell on the groundand scraped your knees? Or did you get back on and try again untilyou were able to ride without falling?

Purchasing a home is not as simple as learning to ride a bike,but the concept is the same! There are many things necessary tolearn that affect the ability to get the financing needed to purchase a home. Pastoccurrences can determine if there is a waiting period. In otherwords, you need to let your knees heal before you try again!

As we’ve mentioned in the past, homeownership has manyfinancial and non-financial benefits. Each person needs to go over thepros and cons, taking the time to figure out what is best for theirfamily. Should they continue renting, or should they try to buy again?

The good news is that some “boomerang buyers” are getting backinto the market. They’re getting back on their bike!

“Of 2.8 million former homeowners whose foreclosures,short sales or bankruptcies dropped off their credit reports fromJanuary 2016 to November 2018, 11.5% have obtained a new mortgage,according to a study by credit rating agency Experian for USAToday.”

NerdWallet’s report also mentioned:

• 6% plan to buy a house this year.
• 39% intend to buy over the next 3 years.
• 58% say they will purchase within 5 years.

Bottom Line

If you lost a home due to a financial event but would like toreview your options, let’s get together to help you create aplan to obtain a home in the future!