Boomerang buyers look to boost Valley housing marketPosted: Updated:
PHOENIX -- It happened in every neighborhood, in every city across the Valley - homes going into foreclosure during the housing crash of 2008.
Dean Wegner, with the Academy Mortgage Corporation, told CBS 5 that homeowners paid a steep price, by not only losing their house, but having their credit ruined for years.
"They couldn't do anything," Wegner said. "Many of them had to rent because they couldn't buy a home. Lenders basically punished these people for strategic defaults or for having a foreclosure."
Lending guidelines require that anyone with a foreclosure wait at least three years to qualify for an FHA loan up to $271,000 and wait seven years to be eligible for a conventional loan up to $417,000.
Homeowners with a short sale must wait three years for an FHA loan and four years for a conventional loan.
Veterans with a foreclosure or short sale only need to wait two years to be eligible to buy a home again.
Experts recommend checking your credit report long before you start home shopping, and consulting with a lender to see what you qualify for.
Loan requirements are still pretty stringent, Wegner said.
Jodi Buckles, of Phoenix, is among the thousands of Arizona homeowners who've been "waiting it out" to buy another home.
During the recession in 2008, Buckles lost her job and her family was forced to foreclose on their house.
"It was definitely one of the hardest things our family has been through," Buckles said. "Something you never foresee coming."
Now, Buckles and thousands of other Arizona homeowners have new hope, because their punishment of bad credit is about to expire.
Buckles is what you'd call, a "boomerang buyer."
A boomerang buyer is someone whose credit was ruined after a foreclosure or short sale during the recession, but now enough time has passed that they can qualify for a home loan again.
Real estate experts told CBS 5 that a wave of boomerang buyers are re-entering the Valley's housing market, which should be good news for Arizona home value.
"We have always been homeowners, so being in this spot definitely feels awkward," Buckles said. "We're excited to be homeowners again."