The latest trend in the national real estate market is that former homeowners who lost their homes in the recent recession are starting to re-emerge and looking to buy again. These homeowners – frequently called “boomerang” or rebound buyers – are estimated to be as many 7.3 million (!) and RealtyTrac predicts that many will return to the housing market during the course of the next eight years.
Of course, many of these former homeowners either lost their homes through foreclosure or went through a short sale. To qualify for a home loan again the waiting period is generally seven years although extenuating circumstances – serious health problems, death of a primary provider, divorce, job loss etc. – may reduce the wait time to three years.
Finally, these buyers often have other credit issues as well. Reducing their current debt should be a priority as being close to the maximum on a line of credit is considered a financial risk. Then, of course, there’s the down payment…
Regardless of the obstacles, even the potential return of these former homeowners is good news for the real estate market.