Owners who lost homes set for strong return
Aug 24, 2015, 9:27 AM | Updated: Mar 4, 2016, 5:46 am
Over the next five years, the housing market will see approximately 1.5 million eligible return buyers jump back into home ownership, according to a new study by the National Association of Realtors.
These return buyers, nicknamed “boomerang buyers,” lost their homes during the housing crisis. They have restored their credit and are ready to impact the already low inventories of homes for sale.
Since 2006, 950,000 of these former owners have already purchased a home again and more are on the way.
Close to 700,000 of the 7.3 million homeowners who went through foreclosure or short sales are now are eligible to get a mortgage again this year, reported Daren Blomquist, vice president of Realty Trac.
The market will see an influx of buyers with past credit problems who are looking for mortgages, and not just foreclosures or short sales, according to John Councilman, president of the Association of Mortgage Professionals.
“We have a lot of people with issues and many are coming back into the market,” Councilman said.
