Many borrowers who faced bankruptcy, foreclosures and short sales during the mortgage crisis from 2007-2009, are now eager to get back into the market and find their next home! Are you prepared to capitalize on this opportunity?
How will these “Boomerang Buyers” impact your business? A recent study by TransUnion revealed that 1.5 million potential buyers could re-enter the housing market in the next three years after recovering from a damaging experience during the recession. We have the tips you need to attract these buyers!
- Restore Confidence | Be overly aware that these buyers were once burned. Take extra steps to make it known that you are there to help in any way and guide them through the successful purchase of their dream home, that they will cherish for years to come.
- Repair Credit| Ensure that your buyers have done all that they can to improve their credit score. A foreclosure takes seven years and a lot of hard work to fully rebound from. Axia’s own Credit Optimizer educates buyers on how to improve their credit. Participating clients are provided a credit score forecast, TransUnion credit report, and consumer education score, free for 6 months along with an action plan that provides ongoing guidance. Sometimes the best advice is to allow the buyer time to develop a stronger track record, keeping their best interest in mind.
- Set Expectations | While there are low down payment options available, boomerang buyers should understand that in today’s competitive market, larger down payments carry more weight, in addition to creating the most attractive offer and lowering monthly payments. This decreases the risk of another potential foreclosure or delinquency. As compared to seven or eight years ago, many buyers today find the loan process to be more involved, requiring more time and attention. It is extremely important for LO’s and agents to educate the buyer about the entire process upfront, in order to avoid frustration and confusion throughout the transaction. Educated borrowers prove to be great referral sources after a great loan experience with Axia.
This year presents a great opportunity to connect with buyers that you helped find homes for during or just before the recession. Be proactive and understand their hesitations and let them know you haven’t forgotten about them!