Distressed Home Ownership?
Looking to purchase a home after a Foreclosure? Bankruptcy? Or Short Sale? Keep Reading!
In April 2015, the National Association of Realtors “analyzed the nearly 9.3 million homeowners that underwent a foreclosure, received a deed-in-lieu of foreclosure, or short sold between 2006 and 2014 to estimate the amount of creditworthy borrowers expected to re-enter the housing market as a return buyer in upcoming years.” The findings reveal nearly a million of these former owners have likely already purchased a home again, and an additional 1.5 million are likely to become eligible and purchase over the next five years, representing an additional source of buyer demand for the housing market.” Source: NAR Study
Have you heard the latest term Boomerang Buyer and wonder what it means?
A Boomerang Buyer is considered a home buyer who has gone through a foreclosure (deeds-in-Lieu of Foreclosure) or short sale of their home during the recent housing market crash or has had a bankruptcy in the past few years and is now looking to purchase again. Many boomerang buyers have been repairing their credit and saving up down payments, so that the dream of home ownership can become a reality again.
Although Vegas seemed to be one of the hardest hit foreclosure markets in the country, it is not one of the top 5 seeing a comeback from boomerang buyers. Back in July 2013, Realtor Magazine reported Boomerang Buyers are “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.” The article went on to report the top markets with the highest rates of boomerang buyers (according to research by John Burns Real Estate Consulting July 2013) The results came in as follows, and unfortunately newer percentage statistics were not available at the time of this report (September 2015).
- 4.10% Riverside-San Bernardino, California
- 3.70% Los Angeles, California
- 3.60% Phoenix, Arizona
- 2.50% Chicago, Illinois
- 2.40% Atlanta, Georgia
- 2.12% Las Vegas, Nevada
- 2.10% Washington, D.C.
April 2015 statistics show that there were 319,000 Total Foreclosed Sales, Deeds-in- Lieu of Foreclosure, and Short Sales in the state of Nevada during the years 2006 to 2014.50,000 Boomerang buyers purchased again in 2006-2014 in Nevada. And an additional 60,000 boomerang buyers are expected to purchase again in 2014-2023 in our state. Source NAR Study
So I’m Called A Boomerang Buyer, Now What?
So how does one boomerang back into the market? It’s a complicated answer depending on your situation, we can help you determine based on your unique situation and the below information may be helpful.
Purchase After Bankruptcy
After a bankruptcy buyers will have to wait typically 2 years before they can purchase again. However, some buyers can qualify to purchase in 1 year but could have to wait up to 4 years depending on the loan type and bankruptcy differing between chapter 7 and 13 discharges.
Purchase After Foreclosure
After a foreclosure (or Deeds-in-Lieu of Foreclosure) a home buyer may be able to purchase again as soon as 2 years from the completion date if under a VA Loan. The most common seasoning periods are 3 years for FHA or 7 years for Conventional Loans. Keep in mind it’s all dependent on the loan type and extenuating circumstances of the foreclosure.
Purchase After Short Sale
After a Short Sale there are no time restrictions for a buyer to wait on FHA and VA loan types if the mortgage was current at the time of short sale. If the mortgage was in default, the waiting period varies 2 years for VA and 3 years for FHA; while Conventional loan types are dependent on a seasoning period of 4 years.
Understanding how Foreclosure, Bankruptcy or a history of Short Sale can affect your purchase-ability is very confusing. Fortunately for you, you have Dave and The Radcliffe Group and his team of professionals that can help you understand your situation and options. Dave has over 25 years experience selling Las Vegas area real estate and has developed some of the best relationships with the most respected professionals in the business. Gina Baker (featured in the video above) is a great resource.
Give Dave a call and lets see how quickly you are able to get back into home ownership. After-all, its about making a comeback. Boomerang Buyers are Welcome Here!
Thinking About Selling? Demand for Homes is High!
What does this mean for homeowners looking to sell their Las Vegas, Summerlin, or Centennial Hills homes? It means there are additional buyers who want to purchase your home. With less than 3 months of inventory and only 6-7 weeks in some areas of town, demand for homes is high. When demand is high, houses sell quickly and for top dollar. With interest rates at historically low rates, it makes affordability easier for home buyers. If you are considering selling your Las Vegas area home, give us a call, we would be happy to help you create a marketing plan to yield you the highest return possible and get you into a new home, benefiting from the low rates yourself.
About Dave and The Radcliffe Group
As a retired police officer, Dave is passionate about giving back to the service community and dedicates much of his time giving and supporting the Las Vegas Metro Police Department, Firefighters and Military at Nellis Air Force Base. Military, Fire and Law enforcement never pay a full commission when they work with the Radcliffe Group. The Radcliffe Group can assist you in your Las Vegas PCS or relocation, New Home Construction purchase, Condo and Luxury Home purchase. Specializing in helping Las Vegas and North Las Vegas homeowners sell their home for the highest market value, Dave and his team will help you yield your highest profit. Call 702-379-3401 when it is time to sell your Las Vegas, Summerlin, Centennial Hills or North Las Vegas Home.
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Written by Nickel Lowman
For Dave Radcliffe, The Radcliffe Group
Keller Williams Realty Southwest