Foreclosed homeowners could return to market over coming years
Posted on Wednesday, February 4, 2015 at 8:15:29 AM
Foreclosure may feel like the end of the road for most homeowners. However, there is a chance that they find a way back into market, be it five years, 10 years or 20 years down the line.
These are known as "boomerang buyers," and a recent report from RealtyTrac indicated that a number could be jumping back into the housing market over the next eight years. In fact, as many as 7.3 million former homeowners may have their financial situation under control enough to buy once more.
"The housing crisis certainly hit home the fact that homeownership is not for everyone, but those burned by the housing crisis should not immediately throw the baby out with the bathwater when it comes to their second chance at homeownership," said Chris Pollinger, senior vice president of sales at California-based First Team Real Estate.
In addition, CoreLogic reported that home prices increased by 5 percent this past December compared to December 2013. Overall, there have been 34 months in a row with year-over-year price gains.
For foreclosed homeowners, it often takes seven years or more to rebuild credit and maintain healthy personal finances before homeownership is a reality once more. However, a smart strategy can mean affordable residential financing and a new home are still in the works following a foreclosure.