Changes to federal housing loan guidelines are giving Palm Beach County residential observers hope that borrowers who lost homes to foreclosure could soon become eligible for new mortgages.
Recent modifications to Federal Housing Administration standards and enhancements of Fannie Mae’s loan approval systems may result in 2014 being the year of the “boomerang buyer,” the Palm Beach Post reported. Former homeowners are expected to have the chance to buy again as soon as one year after the resolution of their foreclosure cases. One Jupiter mortgage broker said his company is already obtaining financing for buyers who faced foreclosure after the housing market collapse.
That would be big news for the Palm Beach County market, which has had 110,000 foreclosure actions filed in the last six years. Short sales in the county have declined from 2,625 in 2012 to 1,646 through October 2013.