Afterforeclosure.com recently introduced its loan eligibility app, and 4,000 interested buyers have already completed the application just one month after its introduction. The aim of the app is to help borrowers gauge if there is a loan program available to help them buy a new home right now or in the near future, or if there may be any qualifying items that could be affecting their ability to purchase.
Jon Maddux, cofounder of after foreclosure.com says "There needed to be a way for people to easily see if they are eligible to buy again." The free website helps homeowners recover after a foreclosure or short sale, and provides helpful resources for obtaining a new loan.
Once the loan eligibility app has been completed it will immediately send the borrower a detailed report of whether or not they are eligible to repurchase, or if there are any aspects that need time and attention. Some 23% of those taking the test will pass and will be eligible to purchase a home. Some 29% of those taking the test are looking to buy a home immediately, while 15% are looking to buy in three months, and 43% are hoping to buy in six months or more. Out of those taking the test, 73% had a foreclosure, while 27% had a short sale, but 98% of test takers are employed with a consistent income.
Apparently some homeowners who managed to hold onto their houses over the last five years are upset over what seems to be unfair circumstances, and are even questioning lenders rationale in giving loans to people who have had foreclosures or short sales.
Maddux had this to say about the situation: "People who are upset the strategic defaulters and now re-entering the housing market, need to realize that these purchases are helping to bring their homes value back. If you think demand is high for homes in kid friendly, family oriented communities now, just think about how it will look when the millions of people who have gone through foreclosure become eligible to buy again. It's going to continue driving house prices up."
Figures from Moody's analytics showed the numbers of eligible homebuyers who have had a previous foreclosure will reach 1.5 million by the first quarter of next year. While strategic defaulters between 2008 and 2012 may have lowered their neighbors home value, the fact that these so-called boomerang buyers are now re-entering the market is building home prices and creating a renewed excitement in the housing market.