By Kimberly Miller
Michael Kodsi, chief executive officer of a bank in Boca Raton, Fla., says he’s had three inquiries recently from boomerang buyers.
“They’ve been taught a lesson. They want their house payment to be affordable,” Kodsi says. “The people I’ve dealt with are more excited than ever to own their own home and are sick of renting.”
But there is a reality check. People who can get a loan may not always be able to find a house. They’re coming into a market with historically low interest rates, but also low inventory. And because they have a default on their record, they may not qualify for the amount of loan they want.
“A lot of people who did a short sale for a low price are getting back in the market and have sticker shock,” says Realtor Shannon Brink, with RE/MAX Prestige Realty in West Palm Beach, Fla. “The prices are higher and financing is a challenge.”
Still, it’s happening. McDonough had a client buy a $515,000 Jupiter home this fall, less than three years after a short sale on his previous property. The short sale reduced his credit to below 600, but two years of good payment history helped it shoot up to 740.
Former North Palm Beach, Fla., homeowner John Lebeau battled through a nasty—and he says fraudulent—foreclosure for years before it ended in an October eviction. He says he’s having trouble finding a place to rent because his credit is shredded, but is eager to buy again when he can.
Lebeau says it makes more financial sense to own, especially with today’s lower interest rates and if the plan is to stay in the home five years or more.
There are other reasons, too.
“These are people who believe in the American Dream and believe homeownership is the way to go,” McDonough says.
©2014 The Palm Beach Post (West Palm Beach, Fla.)
Distributed by MCT Information Services
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