Wednesday, July 20, 2016

Boomerang Buyers: Getting Back to Home Ownership

With an astounding 4.4 million homes lost to foreclosure since the financial meltdown in 2008 plus roughly 2.2 million short sales through 2013, it's no wonder why the rental market heated up over the past 3 years.  Investing in real estate, especially in hard hit real estate markets like Reno, was an easy decision.  Investors certainly outnumbered primary residence home buyers, especially first time home buyers.  That tide has significantly turned over the last year.

Along with move up/down buyers, transplants and first time home buyers, a growing number of those over 7 million former homeowners are re-entering the home buying market...boomerang buyers.

With recent changes by Fannie Mae lowering the waiting period since a short sale, foreclosure or bankruptcy (from 4 years to 2 years this past September), lenders are opening the doors to home ownership again.  That said, it is still important to learn from the lessons of living beyond one's means with mortgage products that set many of those millions up for failure.  Though certain creative mortgage products are making their way back in the market, new rules put forth by the CFPB will hopefully mitigate the chance of another mortgage debacle.  Time will tell!

CLICK HERE to get an overview of changes regarding waiting periods based on your specific situation.  For a more in depth discussion, feel free to email or call me