If you survived the recession during 2008-9 unscathed, you must be a happy homeowner. There were millions of foreclosures beginning from 2010 with homeowners filing for bankruptcies. Nine years have passed since then and hundreds of thousands of such homeowners have now been discharged of their bankruptcies. These individuals are back in the housing market along with other buyers and they are poised to ignite the fire in the already hot housing markets across the country. The situation is not much different in Northern Utah.
According to an estimate, nearly 12.8 million homeowners entered into foreclosure between 2010 and 2014. Many of these homeowners have now completed the 7-year itch and are ready to indulge in home shopping once again. Millions of homeowners will enter the housing market with each passing year as they discharge their bankruptcies.
Experts believe that all these individuals have already been homeowners. They know what it feels to be the owner of the home they are living in. They have been denied this right for 7 long years. Now that their wait period is over, they are likely to hit back at the housing market with a vengeance. With low inventories, these individuals are giving tough competition to other first time home buyers.
There are also experts who find that many of these individuals are slow to return to the fold. Experts say that these fellows have been hindered in their endeavor by rising home prices, more stringent lending terms, increased mortgage rates and low inventory in the housing market. Also, in the case of many of these individuals, credit scores are still lower than what is required to easily get a mortgage loan from a bank.
Fear factor also plays a role in many of these reluctant buyers. Many of them do not want to take the risk of owning a home again as they are fearful of losing it through foreclosure once again. But yes, it is a fact that nearly all of those who approached banks and got a mortgage loan are more careful this time and are repaying their loan diligently.
Northern Utah also experienced its share of defaulters during the rise of 2008-9. Thousands of these homeowners are now eligible to buy a home after having discharged their bankruptcies. Research of millions of such defaulters across the nation reveals the fact that nearly half of them return to the housing market to buy a new home.
