The romance and relationship between homeowners and their homes is deeply ingrained in Americans. Today, Palm State Mortgage brings you the story of homeowners finding hope again, but first, let’s observe a little background:
The Mortgage: A Marriage Certificate Between House and Homeowner
Once homeowners “marry” to a particular home with a mortgage, the home almost becomes a living character.
In fact, “The House” almost gains the status of a member of the family. Everyone in the family is in love with the home. Each of them does his or her best to intensify a relationship with it, protecting it, cherishing it, and lavishing it with gifts of heart and soul.
Bad Romance: Once Upon A Time…4-7 Years Ago…
Parents insured the home with expensive policies and children showed their devotion by decorating the fridge with their art, or mowing the lawn. They were in love.
Then came the financial crisis. The romance turned bad.
In their eyes, the family saw the mortgage become a suffocating symbol of financial deprival.
In the financial crisis, the house made impossible demands. In short, the homeowner and the house got the equivalent of a divorce: foreclosure.
The Homeowner’s New Hope
TransUnion recently conducted a study which analyzed the financial lives of 180 million consumers between 2006 and 2014. The study revealed at least 700,000 homeowners whose credit had been wounded by their first bad romance with a home mortgage.
They endured difficulties with foreclosures, missed payments or other negative events during the financial crisis.
The good news is that time and a recovering economy have made it possible for many homeowners to re-build their financial profile. As of this year, Palm State Mortgage Company has learned that those formerly destroyed families could re-enter the mortgage market.
When they find the courage to try again, to apply, and take on a home mortgage loan, they stand an excellent chance of having their loans approved. This special group of hard working, crisis-scarred home buyers has become known as The Boomerang Buyers.
Over the next few years, TransUnion predicts we can expect “millions of crisis-scarred consumers to qualify for mortgages again.”
In fact, “the number of these “boomerang buyers” will increase, with potentially 2.2 million borrowers, previously shut out of the housing markets, able to apply for home loans over the next five years.”
There is no doubt about it; many of the Boomerang Buyers have proven they have survived the financial crisis, become debt free, and earned the right to exercise financial freedom again.
They have worked hard to establish records of solid employment and nice FICO credit scores.
For most of the homeowners, this long steady climb out of the debris of financial destruction has taken four to seven years. Having endured a bad romance or a divorce a la foreclosure with a home mortgage, half of them are reluctant to give away their hearts or dollars to home mortgage payments again.
Joe Mellman, TransUnion’s vice president for mortgages, stated “As boomerang buyers … become eligible to re-enter the mortgage market, they may not immediately do so if they are not aware they are eligible again or feel daunted by their prior experience.”
At Palm State Mortgage Company, we encourage any type of potential home buyers, even Boomerang home-buyers, to take a look at the opportunities home ownership brings you. With our resources, we are confident we can get you the best possible loan rates for your financial situation. Call us with your mortgage questions, and do not be afraid to fall in love with a home.
Remember, love is better the second time around!
