After just one month of its release, the After Foreclosure Loan Eligibility App has garnered interest from over 4,000 potential buyers, according to AfterForeclosure.com, the site that introduced the product.
The application gives borrowers who have lost their home to a foreclosure or short sale an idea of where they stand in terms of being able to qualify for a loan again.
Once users complete the After Foreclosure application, they will receive a detailed report of whether or not they are eligible to repurchase and what aspects need more time or attention.
According to a release, 23 percent of users passed and were found to be eligible to purchase after losing their home through a foreclosure or short sale. About 29 percent of test takers are looking to buy a home immediately, while 15 percent are looking to buy in three months and 43 percent plan to wait 6 months or more. Of the app users, 73 percent went through a foreclosure while 27 percent pursued a short sale. Nearly all (98 percent) of the users were employed with consistent income.
Jon Maddux, co-Founder of AfterForeclosure.com, would like to see previous defaulters re-enter the market.
“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 to drive housing prices up. Home prices in your neighborhood will increase with offers, purchases, and eventually your own refinances,” Maddux explained.
Maddux also believes the market is at the beginning stages of a “boomerang buyer phenomenon,” where borrowers who went through a foreclosure or short sale are starting to qualify for a loan again. However, statistics have not become available showing just how many boomerang buyers there are.
“As values rise and investors recede, it will be on the backs of the boomerang buyers that the housing market stability will be restored,” he added.