Foreclosed Borrowers Can Now Buy Again

Former homeowners who have gone through a foreclosure in the past few years, even as recently as twelve months ago, may now be qualified to buy a home once again. An FHA program called ‘Back to Work’ allows the purchase of a new property following a foreclosure provided that the borrower can prove their default was the result of a financial hardship.

Additionally, a study by AfterForeclosure.com Indicates that, in fact, 79% of those who lost homes through foreclosure are interested in buying again, that 41% have higher incomes now than when they first purchased, have lower debt obligations, and have substantial down payments. Instead of chasing the super heated housing market of the past, these potential buyers are wanting to buy for the right reasons related to lifestyle and setting down roots.

CoreLogic reports that 4.8 million foreclosures have been completed since September of 2008 so there are a lot of potential purchasers out there. Most, however, are not aware of the FHA program designed to help them.