Homeowners who went through foreclosure a few years ago are becoming a small but growing force in the homebuying market. The Wall Street Journal calls them “boomerang buyers.”
The WSJ says that “real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration.”
Rising in Phoenix
One is Ronda Martinez, 39, who, with her husband, Mark, lost a $430,000 home to foreclosure in 2007 when they had to move to Phoenix for a job and couldn’t sell their home in Perris, Calif. Since then, the Journal says, “the family has repaired their finances” and Ronda Martinez, after losing one job, has found another:
“This month, the family is closing on a $150,000 home in Phoenix that has five bedrooms and a pool in the back.
“‘Initially people are upset and think, “I’ll never buy again,”‘ she said. But ‘there’s no reason to give up on owning.'”
The low cost of buying, compared with rising rental costs, is what’s pushing many to re-enter the market,Reuters says: “‘Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,’ says Graham Epperson, vice president of sales in Arizona for the PulteGroup, a leading U.S. home builder.”