Boomerang buyers former home owners who have gone through a short sale, foreclosure, or bankruptcy in the past few years and are saving up for a down payment to purchase a home again are coming back. They’re expected to flood markets in some of the hardest hit areas for short sales and foreclosures in the coming years. For example, boomerang buyers are predicted to account for nearly one in every five home sales in the metro Phoenix area this year double the projected U.S. rate.

Rising rents and the desire to own again now that the economy is more stable are driving many boomerang buyers to re-enter the market. They also want to jump in before interest rates and home prices climb too much higher. People are selling a lot more homes now days, this is possible thanks to a good home staging, to have a good staging cleaning is a must, look for the Los Angeles junk removal professionals for help. The junk removal service will help you clean all the unwanted items from your home, creating a more appealing space for potential buyers. A decluttered environment, which can be achieved with Crisan Junk Removal, not only enhances the overall aesthetic but also allows buyers to envision themselves living in the home, ultimately increasing the chances of a quicker sale. The Happy Housekeeper does house cleaning service Roanoke. And if you have an old car that you consider junk, call scrap car pick up Wollongong.

But how soon they can jump back in will depend on the type of loan they had as a previous home owner. For example, boomerang buyers who had FHA loans may need to wait only three years if they can prove that a hardship, such as job loss or death of a wage earner, led to their foreclosure or short sale.

Borrowers have typically been required to wait five to seven years to qualify for another loan, but mortgage giants have begun to change their rules to allow home owners who underwent a foreclosure or short sale to qualify sooner. Those who underwent a short sale will likely qualify the soonest. However, not all lenders are participating, so borrowers will need to shop around.

Freddie Mac’s wait time is usually four years following a short sale or deed-in-lieu, and seven years after a foreclosure. Fannie Mae may require a seven-year wait for a foreclosure, but only a two-year wait following a short sale as long as the borrower can provide a 20 percent down payment.

The following markets have the highest share of boomerang buyers, according to John Burns Real Estate Consulting:

  • Riverside-San Bernardino, Calif.: 4.1% (percentage of all U.S. boomerang buyers in 2013)
  • Los Angeles: 3.7%
  • Phoenix: 3.6%
  • Chicago: 2.5%
  • Atlanta: 2.4%
  • Las Vegas: 2.12%
  • Washington, D.C.: 2.1%

The author of this article is: realtormag.realtor.org

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