There is a silver lining to the foreclosure crisis for those that chose not to go underwater—namely, more people who actually were in foreclosure are now buying again.
How many are actually able to purchase
Unfortunately, the government and housing market does not keep track of the specific real estate numbers. Nevertheless, because of the foreclosure crisis many who never thought that they would get a second chance at the American Dream of buying a home are now.
How are these homeowners doing it
Simply put: Chances of home ownership depend upon the silver lining. Reports indicated that for those who went bankrupt and added the foreclosure in their bankruptcy have to wait four years. Folks that sold via short sale need to wait two years. How one got rid of the distressed property and one’s current financial status are relevant to the bank’s review.
The great irony is that those who were shunned by the banks are now bolstering demand for home purchase. The same lenders that were unwilling to work out loan modifications or waive deficiencies are now willing, given the circumstance, to lend again to those so shunned. The economy is and will continue to be aided by those who were formerly in foreclosure.
As we have said all along, we all should be able to realize the American Dream of home ownership. Perhaps now the banks are beginning to realize that each case should be reviewed on its merits before summarily making decisions that have wide ranging implications.
In a recent article, Paul Owers from the Sun Sentinel explains that, “depending on credit scores homeowners can get new mortgages without waiting seven, two or even one year before qualifying for another mortgage.”
Furthermore; most importantly, for those who chose to hang onto their underwater property at all cost and let it drag them under may want to reconsider their strategy and take note of their fellow neighbors who threw in the towel a few years ago.
Real estate and foreclosure defense attorney, Roy Oppenheim left Wall Street for Main Street, founding Oppenheim Law along with his wife Ellen in 1989 in Fort Lauderdale, Florida. He also is vice president of Weston Title and creator of the South Florida Law Blog, named the best business and technology blog by the South Florida Sun-Sentinel. Follow Roy on Twitter at @OpLaw or like Oppenheim Law on Facebook.