Recently, HousingWire analyzed data from the US Bankruptcy Courts
and revealed that 6 million Americans will have their bankruptcies
disappear off their credit reports over the next five years and that
this could “
possibly send a flood of more homebuyers into the housing market.”
chart below shows the total number of bankruptcies filed by year in the
US over the last 10 years. The light blue bars represent over 3.3
million people who have already waited the 7 years necessary for their
reports to no longer include their bankruptcies.
How would this “send a flood of more homebuyers into the housing market”?
the article mentioned, in 2010 the number of chapter 7 bankruptcies
increased to nearly 1.14 million. Now, 7 years later, they will begin to
fade from credit histories, enabling prospective buyers to become
homeowners again once their credit scores improve.
As we can see
from both reports, the homeownership rate has the opportunity to
increase drastically over the next few years with all of these boomerang
buyers returning to the market.
your family was negatively impacted by the housing bust, here is the
light at the end of the tunnel! You may be able to purchase your dream
home faster than you think!