Between 2006 and 2009 about seven million home owners had trouble repaying their mortgage, according to TransUnion, one of three major credit reporting agencies. 2006 being the year prices began to decline and 2009 when the bubble burst. However, this group of people have since diligently worked to meet the qualifications to again secure a mortgage and re-enter the coveted homeowner group. In this year alone (2015) 700,000 United States consumers will be capable of re-entering the housing market. This group, called “Boomerang Buyers”, is expected to grow to 2.2 million (out of the 5.7 million former homeowners) within the next five years.
Mortgage eligibility varies among lenders, so contacting an experienced mortgage broker or real estate agent that knows the standards and products in the mortgage market is highly recommended. Minimum requirements to re-enter the mortgage market generally include: a 620 FICO credit score; no garnishments, outstanding liens, or unpaid judgements; no past due accounts; and four years from a short sale and seven years after a foreclosure.
The boomerang buyers are often unaware that they may qualify to purchase a home again or have a lasting after-taste from their unfortunate experience. Fortunately there are low cost services that can help a person interested in improving their credit. Credit can be monitored for free on websites such as Credit.com. If you are working toward improving your credit score, remember to keep your balances of revolving lines of credit as low as possible, pay your bills so they are not sent to collections, and make loan and credit card payments on time.
Please write about your experience with the housing bubble, re-entering the housing market, or any questions or comments you may have. I am available to help anyone look into financing, plan their entry or re-entry to the housing market, and many related subjects. With the right people on your side your interests will be protected and your home sale or purchase will meet or exceed your needs.