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