Boomerang Buyers Should Not Be Afraid to Buy a Home Again!

Between the years 2006 to 2014 “there were 7.3 million housing foreclosures and 1.9 million short sales.”  The hesitation some Americans feel after experiencing a foreclosure is understandable.  I had a home go into foreclosure myself in 2004 following a back injury that needed surgery.  The thought of homeownership can be extremely daunting after living through the stress that is associated with a bank foreclosure, or even a short sale.  

According to the 2019 Home Buyer Report from NerdWallet,

“Thirteen percent of Americans have lost a home due to a financial event such as foreclosure in the past 10 years. More than 6 in 10 of them (61%) have not bought a home since, and 20% of those who haven’t repurchased say they never plan to again.”

This makes sense. They don’t want to go through the same pain again. As a hallmark of the American dream, nobody wants to lose homeownership. But let’s try a simple analogy: Recall learning to ride a bike as a childhood.  Did you stop riding it because you fell on the ground and scraped your knees? Or did you get back on and try again until you were able to ride without falling?

Purchasing a home is not as simple as learning to ride a bike, but the concept can be the same.  The important thing is to learn from our past and make adjustments in how we approach things in the future.  There are many things necessary to learn that affect the ability to get the financing needed to purchase a home.  Past occurrences can determine if there is a waiting period.  In other words, you need to let your knees heal before you try again!

Homeownership brings many financial and non-financial advantages. Each person needs to go over the pros and cons, taking the time to figure out what is best for their family. Should you continue to rent, or should you try to buy again?

The good news is that some “boomerang buyers” are getting back into the market. They’re getting back on their bike!

“Of 2.8 million former homeowners whose foreclosures, short sales or bankruptcies dropped off their credit reports from January 2016 to November 2018, 11.5% have obtained a new mortgage, according to a study by credit rating agency Experian for USA Today.”

NerdWallet’s report also mentioned:

• 6% plan to buy a house this year.
• 39% intend to buy over the next 3 years.
• 58% say they will purchase within 5 years.

If you lost a home due to a financial event but would like to review your options, let’s get together.  I want to help you create a plan to obtain a home in the future!