May 24, 2018

Foreclosed Home Owners Become New Crop of Buyers

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Foreclosed Home Owners Become New Crop of Buyers

Home owners who faced foreclosure a few years ago are back, and they increasingly want to buy a home again, mortgage brokers report. 

The Federal Housing Administration allows people who have lost their home to foreclosure to purchase a home again three years following a foreclosure.

"It's an interesting phenomenon because, three or four years ago, these people were losing their homes. Now they're out shopping for a new home,” says Chris Apodaca, a California mortgage broker. “It wasn't swift and sweeping legislation that did it, simply a matter of perseverance. These folks waited three years and now they can buy again.”

About 1 million families enter foreclosure every year, according to the Mortgage Bankers Association of America. 

Source: Broadview Mortgage

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