Call Kurtis: Boomerang Buyers Reentering Housing Market

ROSEVILLE (CBS13) — Unpacking boxes this month was the finish line to a long sprint back to home ownership for Mark and Lori Welch. Both were real estate professionals in 2009, when their financial world caved in around them.

"We lost our incomes almost completely," Mark recalled.

"Everything just shriveled up overnight," Lori said.

The housing market crash meant they could no longer afford their luxury home overlooking Folsom Lake. The couple was among the first to do a short sale. Without a home, they weren't sure what would happen next.

"We were contemplating buying a trailer to put on someone's property or living under a bridge or doing something," Lori said laughing.

They became renters. In the four years since, they've paid every bill on time and repaired their credit. This year they qualified for a Federal Housing Administration backed loan and bought a home in Roseville.

"I believed someday it would be able to be done again. I just am surprised it got done so quickly," Mark said.

Some who lost their homes in the housing crisis thought they'd have to wait seven years. Erin Lantz with Zillow.com says it's not as bad as that. She says boomerang buyers are qualifying to jump back into the market in as little as two years.

"Some boomerang buyers could find themselves entering into a mortgage even more attractive than what they had before," she said.

Real estate consulting firm John Burns estimates boomerang buyers will make up one in five home sales in Sacramento between now and 2015.

Mortgage officer Dennis Graves of Safe Credit Union agrees. He says government backed Federal Housing Administration loans seem to be the best option for boomerang buyers. Someone who went through a foreclosure could qualify for a loan in as early as three years. It's even less time for someone who did a short sale.

Find out how long you have to wait.

Although these are the standard lending guidelines, some banks are choosing to be more conservative and more restrictive.

"Obviously you've gone through one event and they're going to want to make sure you're worthy of being able to get another mortgage a second time," Graves said.

Before qualifying for their FHA loan, Mark and Lori had to fix mistakes on their credit report, which can typically take six months or longer.

Qualifying was the first battle. With inventory low, they struggled to get an offer accepted. Putting in more than ten offers, they just couldn't compete with cash investors. The couple changed their strategy focusing on newly built homes which investors seem to avoid. It worked.

"It was a very, very happy day," Mark said.

After surviving one of the most trying times in their lives, they are homeowners again.

"We are so comfy and happy in this house. We really are. We are so thankful for that."