Based on this year’s trend of increasing home prices, many potential buyers who wish to purchase another home after a foreclosure or short sale may find it easier now to get an offer accepted. For those looking to purchase after a foreclosure or short sale, new data from the previous quarter suggests signs that this trend may be cooling and home prices are stabilizing. With the backing off of cash investors and summer homebuyers, FHA and VA approved buyers are now getting the much deserved attention on their offers that may have been overlooked before.
Research recently conducted by Zillow indicates a decrease the appreciation of home value, to 1.2%, through last quarter. This is roughly half of the rate of increase documented in the second quarter this year. If home prices are stabilizing, it may be time again for those who have had to walk away from a home in the past, to again seek home purchase after a foreclosure or short sale. With new programs available, such as the FHA “Back to Work” Program, it is more possible now than ever for people to return to home ownership after a foreclosure or short sale.
The FHA “Back to Work” program stipulates a 12 month waiting period after a foreclosure or short sale, and requires a demonstration of employer driven household loss in income of at least 20% for 6 months or longer leading up to the foreclosure or short sale. Down Payment on these loans is in the .5%-3.5% range and APR is currently in the mid 3%- mid 4% range.
This new option is helping a significant number of people after their foreclosure or short sale to get back into a home.
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