Boomerang Buyers Essay

817 Words 4 Pages
In 2008, the stock market took a plunge and lost approximately 1.2 trillion dollars. Many factors led up to this incident such as the Lehman Brothers bankruptcy and Emergency Economic Stabilization Act. The fall of the housing market quickly followed shortly after. Homeowners across the nation found themselves with no choice but to foreclose their beloved home. Six years later, these victims, who are called “boomerang buyers,” are beginning to get back on their feet, and get back on track with their life. First off, “boomerang buyers” are those who are now ready to buy a house again after losing a home to foreclosure. The housing market has not fully recovered in some areas but that is okay for these buyers because they have a strong motivation …show more content…
Buyers who are renting a house can determine whether or not they like it over the years and invest in it. Moreover, it gives them a chance to get to know the surrounding neighborhood. Therefore these buyers can continue to pay rent, while determining if it is the “one.” In my opinion, this is a great approach because the buyers are not fully invested, but they can be if desired. Each subsequent payment builds up to essentially a down payment to the owner of the house. After the contract has expired and the seller and buyer are in agreement, the house can be …show more content…
As long as they have maintain a good relationship with the landlord, in the future there is a possibility of owning the home. They should keep track of their payments so that they can establish a good credit score and later on be able to buy with a loan in the future. Over however many years the contract lasts till, the buyer and the seller can come into agreement in whether or not the house will be sold. All of these steps are not set into stone but it is the general concept behind the rent-to-own option in the housing market. Boomerang buyers should know that it is not handy dandy and always like this, but be aware of the process behind it. The rent-to-own option is an enormous market as not all homeowners are willing to let go of their homes too. Nowadays it is also harder for “all in” purchases because not everyone has a good credit score to qualify for a loan for mortgage. The rent-to-own does not usually require a loan as the renter and seller just need to come to agreement in the contract of the monthly payment. This way both the seller and buyer are benefiting from it. The boomerang buyers are not in a complete commitment to buy the home yet they have the chance to experience living in the home and neighborhood. With each payment the renters are building up the credit profiles and improving their score.

Related Documents