“Boomerang buyers who lost a home to a foreclosure or short sale between 2007 and 2013 are projected to make about 10 percent of all U.S. home purchases in 2014, according to John Burns Real Estate Consulting (JBREC)…According to JBREC, the number of boomerang buyers will increase in 2015 and 2016 as more former owners become eligible for new loans.” (“After losing their homes in the foreclosure crisis, boomerang buyers are back“, The Washington Post).
Part of the reason why these former owners can borrow again depends on whether the loan they are trying to qualify for is a conventional mortgage of a government-insured loan. The FHA loans are easier to get after going through a short sale, especially if during the previous mortgage no late payments were made. VA loans have a short two-year waiting period before you can apply for a new mortgage.
[Senior mortgage banker at Talmer Bank and Trust in Rockville, Md., Steve] Cohen says conventional loans require a two-year wait after a short sale for borrowers who can make a 20 percent down payment. The wait is four years with a 10 percent down payment and seven years with a 5 percent down payment. Borrowers who lost a home in a foreclosure — and, therefore, were in default on the mortgage — typically must wait seven years to qualify for a new conventional loan, he says. (“After losing their homes in the foreclosure crisis, boomerang buyers are back“, The Washington Post).
It is possible to become a homeowner once again if you’ve gone through a short sale or a foreclosure! I’m a qualified short sale real estate agent, who knows how to best help you; please contact me for real estate assistance: (619) 890-3648 or www.JohnASilva.com.