The American Dream of homeownership has been resurrected among strategic defaulters, a foreclosure agency stated in a recent report.[IMAGE]
After surveying previous clients, ""YouWalkAway.com"":http://www.youwalkaway.com/ found nearly 80 percent expressed a desire to purchase a new home again within the next 12 months. YouWalkAway.com explained it's common for previous customers to desire homeownership since interest rates are low and home buying lessons have been learned.
Citing data from ""Moody's Analytics"":http://www.economy.com/default.asp, the foreclosure agency also revealed the number of eligible homebuyers who experienced a foreclosure will be 1.5 million by the first quarter of 2014.
""Millions have experienced the unfortunate event of foreclosure, but that does not mean that they should be discouraged from[COLUMN_BREAK]
becoming homeowners again in a more stable environment, or that they should be disqualified from doing so,"" said Jon Maddux, former CEO and co-founder of YouWalkAway.com.
According to ""Federal Housing Administration (FHA) guidelines, borrowers who experienced a foreclosure are generally not eligible for an FHA-insured loan until 3 years after the foreclosure.
In addition, Shari Olefson, attorney and ""author"":http://www.amazon.com/Financial-Fresh-Start-Five-Step-Prospering/dp/0814432298 of ""Financial Fresh Start: Your Five Step Plan For Adapting and Prospering
in the New Economy,"" says a person's credit score would need to be at least around 580 to 620 and much depends on other pieces of the credit picture.
According to Ellie Mae's most recent ""origination insight report"":http://www.elliemae.com/origination-insight-reports/EMOriginationInsightReportJanuary2013.pdf, the average FICO score for FHA-insured loans that closed was 699 in January.
YouWalkAway.com also announced the introduction ""AfterForeclosure.com"":http://www.afterforeclosure.com/, a tool to help former homeowners gauge where they are in terms of becoming homeowners again.
""With historically low interest rates, mortgage payments often rival rental rates. The ability to lock in these reduced rates puts more money in consumer pockets and, ultimately, lends to overall recovery,"" said Maddux. ""It's a win-win and its accessibility needs to be made clear.""
The agency explained that if the ""purchase pop quiz"" shows undesirable results, a report is provided to help the potential borrower learn what steps would need to be taken to become a homeowner in the near future.