Housing market may get a boost from ‘boomerang buyers'
2013-12-28 — theglobeandmail.com
Founders of the San Diego-based company AfterForeclosure.com said last week that millions of banned borrowers nationwide will be eligible for a mortgage next year, while Jupiter mortgage broker Skip McDonough said his firm is already doing deals with home buyers who were forced into default during the housing bust.
"The old-fashioned way of doing it was a seven-year waiting period," said McDonough, president of Family Mortgage. "That's changed, and people who don't believe they can qualify are qualifying."''
Under the FHA's "Back to Work" program, it will approve certain borrowers for a home loan just one year after a foreclosure, short sale, deed in lieu of foreclosure or bankruptcy. The FHA's previous timeline was three years for a short sale and foreclosure and two years for a bankruptcy.
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