Boomerang buyers return to home ownership
By Berit Griffin
August 27, 2014
So-called “boomerang buyers” — those who lost their home to foreclosure or short sale between 2007 and 2013 — will be responsible for about 10 percent of all U.S. home purchases in 2014, according to John Burns Real Estate Consulting (JBREC). The percentage of boomerang buyers is only expected to increase in 2015 and 2016.
This a very encouraging trend within the housing recovery. More Americans are regaining the ability to borrow from lenders, and they still consider home ownership a worthwhile investment.
The Washington Post has an excellent write-up that features several boomerang buyers who are returning to home ownership wiser than ever. As one lender said,
“One woman I worked with recently told me that when she graduated from college, she took every credit card she was offered and had no concept of managing money. She and her husband had kids and bought a house, and then her husband left and she lost the house. Now she’s rebuilt her credit and has a good job and could qualify for a $350,000 loan, but she’s buying a $150,000 home because she wants to feel more comfortable that she can afford the payments.”
You can read the full Washington Post story here.