Clean Slate: Recession Foreclosures, Short Sales to Drop Off Credit

boomerangAre you planning to be a “boomerang” buyer in 2017?  If you had a short sale or foreclosure early in the recession you are able to qualify for a mortgage again this year.  Don’t wait because with interest rates going up your mortgage payment will creep up.  Let’s get you approved by a mortgage broker and find out when you are able to qualify to buy and get you out of that rental property where you are paying the landlord’s mortgage not your own!

Courtesy of RISMedia November 2016

More than two million homeowners who experienced a foreclosure or short sale during the recession will see those events drop off their credit reports by summer 2017, widening their opportunity to qualify for a mortgage, according to a recent study by Experian.

The study, which analyzed the “boomerang borrowers” who foreclosed or short-sold between 2007 and 2010 and have since obtained another mortgage, reveals 68 percent of the two million-plus homeowners with improving credit are now in a more favorable risk tier—and only 3 percent of those who foreclosed and 1.5 loans approvedpercent of those who short-sold are delinquent on their new loan.

“With millions of borrowers potentially coming back into the housing market, the trends that we’re seeing are promising for both the mortgage seeker and the lender,” said Michele Raneri, vice president, Analytics and New Business Development , Experian, in  a statement on the study. “In the coming years, boomerang borrowers will be a critical segment of the real estate market. While many of these borrowers have gone through a very difficult time, it is encouraging to see them taking control of their finances with better credit scores and all-around better credit management.”

The average Vantage credit score of a homeowner who foreclosed during the recession, according to the study, is now 680, up 20.8 percent. The average Vantage credit score of a homeowner who short-sold during the recession is now 706, up 16.5 percent.

Source: Experian

Reprinted with permission from RISMedia. ©2016. All rights reserved.

Remember it is always toasty in Naples and you deserve a piece of Naples sunshine and your own home.  Pay your mortgage not your landlord’s!

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