The Wall Street Journal‘s October 15, 2012 article, “‘Boomerang’ Home Seekers Become Eligible for Mortgages and Hit Market Again” by Conor Dougherty and Dawn Wotapka, identified the “boomerang buyer”:
Millions of families lost their homes to foreclosure after the housing crash hit six years ago. Now, some of those families are back in the housing market. Call them the ‘boomerang’ buyers.”
The real estate term “boomerang buyer” was quickly picked up on blogs. An Austin (TX) blog, on March 5, 2008, posted “Boomerang Buyers Dominate Central Austin Home Trends,” but these “bommerang buyers” were 30-somethings who had left Texas after college. This 2008 “boomerang buyer” definition never became popular.
Dee Copeland’s Blog
March 5, 2008
Boomerang Buyers Dominate Central Austin Home Trends
IS YOUR FRIEND MOVING BACK TO AUSTIN? THEY MAY BE A BOOMERANG
. Boomerangs are 30-somethings who left Austin to pursue a career, Ivy-league or out-of-state university, or other endeavor.
. They now have a small family or career change and want to come back.
. They usually have 20-40% CASH to put down.
. They like the Austin climate, friendly nature, unique atmosphere, family values, and lower cost of living.
. They’d settled in Seattle, Chicago, Michigan, Iowa, Los Angeles, New York, and other international cities, so often have eclectic taste.
The Wall Street Journal
Updated October 15, 2012, 1:08 p.m. ET
Buyers Back After Foreclosure
‘Boomerang’ Home Seekers Become Eligible for Mortgages and Hit Market Again
By CONOR DOUGHERTY and DAWN WOTAPKA
Millions of families lost their homes to foreclosure after the housing crash hit six years ago. Now, some of those families are back in the housing market. Call them the “boomerang” buyers.
It is difficult to quantify the exact number of boomerang buyers, but real-estate agents, mortgage brokers and home builders all say a significant number of new buyers are families and individuals who went through foreclosure as recently as three years ago, the time period that buyers who defaulted on a mortgage must typically wait before becoming eligible for a mortgage backed by the Federal Housing Administration.
Memphis (TN) Business Journal
‘Boomerang’ buyers eligible for mortgages, looking for homes again
Date: Monday, October 15, 2012, 7:48am CDT
Some families that lost their homes to foreclosure after the housing crash are back in the housing market, The Wall Street Journal reports.
Bill Reinhardt’s Law Blog
Introducing “The Boomerang Buyers”
Posted by billreinhardtlaw on October 15, 2012
According to this Wall Street Journal article, a significant number of new buyers who are again entering the real estate market are those that were foreclosed on when the real estate market started its downturn back in 2006. Many of these buyers may again qualify for FHA mortgages having waited 3 years since their default.
New York City • Buildings/Housing/Parks • (0) Comments • Monday, October 15, 2012 • Permalink