Lauren Bunting Broker MD & DE

Boomerang Buyers

Friday, March 01, 2013, Lauren Bunting

Real Estate Report: Real Estate Rebound Buyers

There is a contingency of buyers referred to as "rebound buyers" or "boomerang buyers"--these are the people who lost homes in foreclosures or short sales during the housing bust who are striving to be homeowners again.

It is estimated that more than 4.7 million homeowners lost their homes to foreclosures or short sales since 2007 nationwide. Locally in the tri-county area of Worcester, Wicomico and Somerset counties, we have had 1,647 foreclosures and 624 short sales since 2007.

This amount of buyers re-entering our market could add up to real numbers in the years to come, and may even help to offset any lessening of investor demand as home prices start to increase.

Those who have experienced a foreclosure on their record can rebuild their credit and be able to purchase again in three to seven years. The Federal Housing Administration (FHA) offers programs for buyers on the rebound from a foreclosure or short sale where the wait is just three years. And, if the foreclosure of the borrower's main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.

Regardless of the circumstances surrounding a foreclosure or short sale, any buyer will have to show at least a 12-month good history of payments and increasing credit scores. However, FHA does offer buyers somewhat less stringent requirements than conventional loans. For example, in January 2013, the average FHA credit score was 717 vs. the conventional loan average score of 767, according to data from Lender Processing Services (LPS).

And, since interest rates remain so low and home prices have dipped considerably since the market downturn, "boomerang buyers" have a good chance of obtaining a home more that is more affordable than their last.

Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.

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Thank you so much for all of your hard work. We are so excited to move into the perfect house for us, and couldn't have done it without your guidance.

Megan and Brandon Cater

My friend was right, you are the hardest working realtor, bar none. I honestly don't think that I would have gotten through this house selling process without you.

Brenda Burbage

Lauren made first time homebuying extremely approachable, and took the time to educate me on everything involved in the process.

Amanda Hanke and Keri Swigert

Thank you for all of your hard work and dedication that made this purchase possible. You advocate for your clients and I highly regard you for it. You made it possible for me and my family to achieve our goal of homeownership.

Tom Harutyunyan

Thank you so much for the very wonderful, professional job you did with selling our property. You will always be special to me.

Penny Carley

We want to say a sincere "Thank You" for all you've done for us! We know at times the road seemed never ending. Thank you for always staying positive even through our ups and downs of this process. We appreciate all you do!

Mike and Patty Locke

Lauren's extensive knowledge of the local real estate market proved to be invaluable during the purchase of our first home.

Allison Shockley and Patrick Molloy

Lauren is very easy to work with. She has helped me sell and buy homes in the area and has always been hard working and professional.

Jennifer K. Leggour

Lauren went through tremendous lengths to look out for us every step of the way all the way to the very end. If you are in need of a real estate agent who will treat your transaction as if it were their own and provide you with nothing less than A+ service you will be in good hands with Lauren.

Shireen and Mark Ambush

We were referred to Lauren by a good friend, and we couldn’t have been placed in better hands. Lauren went above and beyond in every way, throughout the entire process.

Liz Young

Lauren Bunting was our realtor when we recently sold two homes- one in Maryland and the other one in Delaware. To say we were very satisfied with all she did for us is an understatement!

Janet and Bruce Lathbury

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