“Boomerang buyer” is the phrase used in the real estate business to describe homeowners who lost homes during the 2007 housing crisis. The idea of boomerang describes the large numbers that have returned to or come back into housing markets as purchasers. The boomerang effect has been a major factor in increased demand for housing and has helped drive housing sales. CFS Mortgage Corporation offers flexible and easy to use programs to help these buyers succeed and avoid lengthy waiting periods. Some can qualify for mortgages as soon as one day after short sale or foreclosure.
Back In The Market
Boomerang buyers have lost homes through mortgage defaults, short sales, or other negotiated deeds of release from mortgage contracts. Many State programs and the Federal Housing Authority (FHA) define a first time buyer as one that has not owned a home in the three years preceding an application. Some State programs offer financial incentives to increase home sales and assist home buyers to purchase properties in their communities. Some offer cash assistance to first time buyers. However, these opportunities, unlike CFS Mortgage, require a lengthy three year (3 year) waiting period and other specific requirements.
Foreclosure, Short Sale, and Defaults
Boomerang buyers who have lost homes through short sales can return to the market with less difficulty if they have a qualified credit score, and if they were current on the mortgage at the time of the short sale. It is only for this group of buyers that there no waiting period. They can qualify for FHA and VA mortgage loans and assistance. However, if they were not current at the time of loss then a substantial waiting period would apply.
Those who have lost homes in foreclosure must also wait for a long period. They can qualify for FHA backed mortgages after three (3) years if they also meet requirements for minimum credit scores and employment (two years of continuous employment). A minimum down payment is an additional requirement.
Bankruptcy requires a longer waiting period to qualify for mortgage financing. Conventional mortgages require a four-year waiting period after a Chapter 7 bankruptcy, two years after a Chapter 13 discharge, and four years after a Chapter 13 dismissal. Mortgages can also be included in a bankruptcy with agreed mortgage payments. If a default occurs within that time, the waiting periods must generally be determined from the date and type of the loss. For FHA mortgages, Chapter 7 requires two years after discharge, and one year after Chapter 13 discharge.
VA programs require a two-year wait after chapter 7 discharge. They must obtain an approval by the Court in a Chapter 13 case. Where monthly payments were made for 12 months, the trustee could recommend, and the court could permit, a lender approval.
The return of many boomerang buyers to the housing market is a very positive development for the ongoing national economic recovery. CFS Mortgage offers programs that emphasize financial flexibility. Credit scores as low as 600 can qualify, and many buyers will qualify one day after short sale or foreclosure without the more difficult requirements of government and conventional lenders.