Facing a foreclosure can be traumatic. Putting all of that hard work and hard-earned money into buying a home, only to have it fall through in the end, is the worst-case scenario for many buyers—enough that it may prevent them from buying again.
While it’s hard to imagine the impact that a foreclosure has, it doesn’t mean that your home-owning dreams are over. In fact, many “boomerang buyers” are gearing up to give it another go!
What is a Boomerang Buyer?
Following the housing crisis—from 2006 to 2014—there were 7.3 million foreclosures and 1.9 million short sales, according to CoreLogic. After going through the foreclosure process, buyers must wait about seven years before applying for mortgage again, although that timeline may be shorter if you qualify for an FHA loan.
Those buyers who have previously undergone a foreclosure but have chosen to buy a home once again have been coined as “boomerang buyers”—and now that a few years have passed, there are more and more entering the market!
The Latest Numbers
The NerdWallet‘s 2019 Home Buyer Report sheds some light on the latest trends for boomerang buyers. Out of the 13% of Americans who lost a home in the past ten years, around 60% have not re-entered the market, and around 20% say they’ll never buy a home again. Those numbers are certainly cautious, and also a tad bit grim.
The good news, though? The numbers are starting to look up.
In January 2016, 2.8 million people who experienced foreclosures, short sales, or bankruptcies had those incidents dropped off of their credit report. Since then, 11.5% of them have successfully obtained a new mortgage!
Not only that, but of the 13% Americans who lost a home, 39% say they plan on buying within the next three years, and a staggering 58% say they plan to buy within the next five.
The bottom line? There’s still hope, despite past foreclosures!
Know Your Options
The most important thing for boomerang buyers going forward is to be prepared. In fact, 74% of formerly foreclosed buyers say that they will be more cautious about choosing a lender, agent, or loan.
When it comes to knowing and working with the top trusted lenders in the area, the Linda Craft & Team REALTORS® has a vast network of options. Since we’ve been working around the Raleigh area for years, we can leverage our unique expertise to ensure that you’re matched with the best possible experts in the area.
Buying a home—especially for boomerang buyers—is intimidating. But when you work with our team, we’re dedicated to laying out all of your options and helping you select the most prudent choice.
Ready to Buy Again?
Then we’re here to help. Team up with Linda Craft & Team REALTORS®, and let us help you buy your next home. With our resources, expertise, and local knowledge, we’ll ensure that your buying journey is both successful and seamless.
Give us a call today to begin exploring all your Raleigh home-buying options!