Foreclosed homeowners poised for return to the market
According to a poll of 140,000 LoanSafe.org members, boomerang buyers – those ousted from the housing market due to foreclosures or short sales, spent years renting to rebuild their credit, and have saved enough to buy again – are now expected return to the residential market.
These buyers could flock to the market at an opportune time: investors are pulling back and new government programs aimed at helping consumers with bankruptcies or loan defaults are becoming common.
Jon Maddux, LoanSafe.org co-founder, said almost 80 percent of poll respondents who lost homes during the crisis showed interest in buying again.
Moreover, 41 percent of respondents interested in re-entering homeownership have higher incomes than during their first purchase; 63 percent have lower debt obligations; 46 percent plan to purchase in a lower price range; and 50 percent expect to make at least a 10 percent down payment.