During the financial crisis of 2006 that lasted several years, millions of home owners were affected by a short sale or foreclosure. Several home owners have been able to re-enter the housing marketing after rebuilding credit. A short sale or foreclosure stays on consumer’s credit record for a total of 7 years. However, we are now entering a period where those who took a really significant hit to their credit will be able to once again enter the housing market as the short sale or foreclosure comes off their credit report. There are a total of 2.5 million consumers, called “boomerang” buyers.
In the coming years, boomerang borrowers will be a critical segment of the real-estate market. This is a promising trend for the housing market and spells good news for both demand and for potential home owners who are thinking of selling their home in the near future.