Wednesday, September 11, 2013
There is new hope on the horizon for those who lost their homes due to the recession. The current administration has created a new rule regarding the waiting period for obtaining a new real estate mortgage backed by the Federal Housing Administration. Previously, home owners who experienced a foreclosure or bankruptcy had to wait for three years before they could apply for a new mortgage. The new regulation makes it possible for those who have repaired their credit score, can prove their income, and have gone through a full recovery, to be eligible for a new mortgage loan in as little as one year.
Many agree on the fact that this is a very positive sign for the real estate market and states such as Florida Nevada, and Arizona, have already taken advantage of this opportunity by redesigning their marketing campaigns to attract clients who have proved themselves to be financially stable after going through a foreclosure. These so-called “boomerang buyers” are entering the market and there could be as many as 1.5 million potential buyers by the beginning of 2014. This could boost the recovery of the housing market even more and also help people who suffered financial setbacks during the recession by qualifying for a new FHA-backed loan and building equity in their new home. Moreover, this new rule also applies to former homeowners who made a bank-approved short sale for less than the amount they owned.
Some people are still concerned that we might be returning to risky lending practices which caused the financial crisis. However, according to Shaun Donovan, the secretary for the Department of Housing and Urban Development, “What we are talking about is getting back to responsible lending and we believe that these low-risk loans can be made safely. Furthermore, Logan Mohtashami, a mortgage broker in Irvine, California, believes, “that these new practices cannot be compared to bubble-era excessive spending because the problem back then was that nobody was verifying anything.”
So what does this mean for Tampa Bay homeowners who went through a foreclosure, bankruptcy, or a short sale? There is a really good chance that if you have repaired your credit score, went through a income “full recovery”, completed housing counseling, then you might qualify for a new mortgage on a newly built property. Home-builders are aware of this situation and they have already started increasing their inventory to be able to satisfy the demand of today’s real estate market.
Here at SI Real Estate, we utilize our years of experience while working with clients in all possible situations. Our personal relationship with each customer makes us a very valuable asset in the search for a new home. No matter if you are a first time buyer, if you experienced financial distress, or if you just try to get more information about the current market conditions, SI Real Estate will take the time to go over all the possibilities with you to make sure that you are 100 percent satisfied with our services. Our team is a trusted team of professionals in the greater Tampa Bay area and we will support you throughout the entire process of satisfying your real estate needs. Real People | Real Results!