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Former homeowners boomerang back into the market [Video]

Posted on Monday, May 4, 2015 at 11:44:11 AM

What happened when the housing bubble burst? For millions of homeowners, the monthly payments for their residential financing became too much to pay. They ended up owing more on their homes than they were worth - which ruled out refinancing - and that lead to two main options: foreclosure or short sale.

Many ended up forced into foreclosure, left out of the housing market and dropped back into renting. However, this wasn't the end for these former homeowners. Now known as "boomerang buyers," many are on the way back thanks to the improved housing market and economy.

According to RealtyTrac, more than 7.3 million boomerang buyers are searching for homes once more. One couple is Joann and Oscar Flores, who lost their home in 2008 to foreclosure. After years of renting, they finally had enough saved to buy once more.

The Flores recently closed on a four-bedroom, three-bath home five miles from their old property.

If you've once lost your home to foreclosure or short sale, keep a few things in mind as you work back toward boomerang status. For starters, maintain excellent credit. You should always have a significant down payment saved up as well, and buy only what you are positive you can afford.

Most importantly, consult a skilled mortgage professional for more guidance moving forward.