More than 300,000 South Floridians who lost their homes during the housing bust could be eligible to own again over the next eight years, a new report shows.
In Palm Beach, Broward and Miami-Dade counties, 322,141 homeowners have completed short sales or foreclosures since 2007, when the housing downturn intensified, according to RealtyTrac Inc. But those people are gradually jumping back into the market as "boomerang buyers."
Among major metros nationwide, only the Phoenix area could have more potential boomerang buyers with 348,329, RealtyTrac said.
A large supply of former homeowners looking to buy again portends well for housing demand in the coming years, said Daren Blomquist, vice president of RealtyTrac, a foreclosure listing firm in Irvine, Calif.
"Certainly, first-time homebuyers are an important part of what will happen with housing, but another big piece that will shape the market going forward is those boomerang buyers," he said.
Fannie Mae and Freddie Mac, the government agencies that back more than half of all home loans, used to require a two-year wait after a short sale before a borrower could qualify for another mortgage. The guidelines now call for a four-year wait. A foreclosure still requires a seven-year wait.
But credit unions and community banks don't necessarily follow those guidelines and may qualify a borrower for a mortgage sooner than the prescribed waiting periods.
Ryan Paton, president of Capitol Lending Group in Fort Lauderdale, said he's working with plenty of former homeowners who want back into the market. They're making 20 percent down payments and have fixed credit and financial problems that forced them into short sales or foreclosures, Paton said.
Some people bought more than they could afford or sucked the equity out of their homes during the housing boom, but others were responsible and just caught a bad break, Paton said.
"We were one of the hardest-hit areas in the country, and many people did nothing wrong and still lost 60 percent of their home value," he said. "They just happened to purchase at the wrong time."
Because of the lessons they learned, those who lost their homes during the crisis often are considered ideal buyers today, mortgage brokers and lenders say.
"It's kind of like a fresh start," said Doug Leever, mortgage sales manager for Tropical Financial Credit Union in Miramar.
©2015 Sun Sentinel (Fort Lauderdale, Fla.). Distributed by Tribune Content Agency
