What Are 'Boomerang Buyers'?

June 21st, 2015
in econ_news

by Michael Haltman

Many homeowners negatively impacted by the financial crisis may now, all these years later, finally be in a position to qualify for a mortgage again!

These 700,000 potential 2015 reentrants into the mortgage and housing markets are known by the name 'Boomerang Buyers'.

Follow up:

Boomerang buyers were impacted by the financial crisis in one of these three ways:

  • They were 60 or more days delinquent on a mortgage loan,
  • Have had a mortgage loan modified, or
  • Have lost a home through foreclosure, short sale, or deed-in-lieu of foreclosure.

These boomerang buyers, once 'repaired', can reenter the mortgage market. It's estimated that over the next five years the 2015 number of 700,000 could swell an additional 2.2 million!

TransUnion's Joe Mellman had this to say:

"Based on our study findings, the burst had a significant and dramatic impact on many consumers' ability to re-enter the mortgage market after suffering through the downturn. It's been over seven years since the beginning of the mortgage crisis; this is significant because many derogatory items, such as foreclosures and short sales can prevent consumers from qualifying for a new mortgage for a period of time. The timing of that challenge can vary: for example, four years must pass after a short sale and seven years must pass after a foreclosure. As consumers responsibly manage their credit and pass these milestones, we anticipate a tide of newly mortgage-eligible consumers entering the market."

To summarize...

Boomerang Buyers Re-Entering the Market

Consumers Meeting Agency Selling Guidelines in the Next Five Years

For an excellent and deeper analysis of 'The Bubble, the Burst and Now-What Happened to the Consumer?', visit the TransUnion PowerPoint on the subject here.

Note about the author: Article author Michael Haltman is the President of Hallmark Abstract Service in New York.

HAS is a provider of title insurance in New York State for residential and commercial real estate transactions.

For anyone either buying or refinancing a property your attorney will likely recommend a title insurance provider, although you always have the right to choose your own (click here to learn more)!

If you have any questions you can reach Michael by email at mhaltman@hallmarkabstractllc.com.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved