Boomerang buyers are people who have lost a home due to foreclosure but are ready to buy again. And due to the fact that approximately one million buyers could be eligible for extended credit again in 2016, we are poised to see the return of boomerang buyers to the housing market. In fact, it is estimated that anywhere from three to seven million boomerang buyers will return to the housing market during the next seven years. So the answer to the question is a resounding “yes.”
Another important question is how do boomerang buyers re-enter the housing market? Similar to breaking a mirror and having seven years of bud luck, to be considered for another mortgage loan, boomerang buyers have to suffer through seven years of credit repair, which leads to the No. 1 tip for people who have experienced a foreclosure but want to buy again: Make sure your credit is clean. It is imperative to evaluate your finances before beginning the search process by examining not only your credit report, but your income and savings as well.Second, getting preapproved for a mortgage can make a potential buyer a much more attractive option for a seller. In fact, for boomerang buyers it is essential. Third, have a down payment ready, as a sizable down payment in today’s market is a crucial part of the home-buying process, whether you’re a boomerang buyer or not. Last, but definitely not least, boomerang buyers should always work with a reputable Realtor when attempting to buy again after a foreclosure. A Realtor educates buyers on their options and gives boomerang buyers the advantage needed in today’s tough real estate world.