This type of buyer may become your client soon

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10/06/2015 | Author: Editorial Staff

Research by credit-reporting company TransUnion finds that approximately 700,000 buyers who went through a foreclosure, short sale, loan modification, 60-day delinquency, or other problems during the foreclosure crisis beginning in 2008 may qualify for a mortgage loan this year.

Returning buyers may qualify for loans now thanks to time: Credit scores have had time to improve, and these former homeowners are meeting minimum waiting periods required by lenders such as Fannie Mae, Freddie Mac, and the Federal Housing Administration. TransUnion estimates that 2.2 million previous homeowners could re-enter the market over the next five years.

Keep the following in mind when working with buyers re-entering the market:

Boost their confidence. They may have more worries about purchasing a home than your other buyers. Emphasize the benefits of homeownership, and reinforce their decision to buy again.

Explain how loan application and approval have changed. Buyers have to do more now to show they are responsible and qualified to borrow a loan, so be prepared to help your return buyers navigate this new-to-them process.

Focus on fixed-rate mortgages. NAR research finds that return buyers prefer stable products, and 92% of these buyers used a fixed-rate mortgage product in 2014.

Categories: Business tips
Tags: buyers, research


Comments

Harry Vogelfang on 10/08/2015

I am working with a foreclosure victim now. Yes very nervous and afraid.
Constantly reliving the shock of loosing their home to powers greater then themselves and the feeling of hopelessness

Jordan on 10/06/2015

It’s crucial that we be prepared for clients like this. Having a strategy to get them in the right home for them is incredibly important. Thanks for sharing!


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