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Defaulted Buyers Are Given a Second Chance of Homeownership

By Mike in Downtown San Diego Real Estate|Downtown San Diego Real Estate Market Analysis|November 2012 with 0 Comments

Defaulted Buyers Are Given a Second Chance of HomeownershipRebound buyers such as former homeowners of the Downtown San Diego Real Estate market who have filed for bankruptcy or been through foreclosure have lately been given the opportunity to once again become a Downtown San Diego Condo or Downtown San Diego Loft homeowner. The FHA (Federal Housing Administration) is a source where many rebound buyers can get the chance to pursue the American dream once again.

Many rebound buyers have or still think that they would never be able to buy another Downtown San Diego home but with help from FHA this could most likely be a possibility. Many home buyers are thrilled by this idea as today’s real estate market include low interest rates.

Many think that the FHA originates loans but this is incorrect. The FHA guarantees mortgages made by banks and gets back insurance premiums. The FHA has nearly $1 trillion insured homes where this year a 14 percent of all mortgage origination’s in the U.S. go to this administration.

Many think that its worrying that the FHA allow rebound buyers to pursue the chance of home ownership just three years after the foreclosure process is completed and on top of the iceberg with a 3.5 percent down. There are no exact numbers yet about what would be needed for the agency to stay well balanced. A possible $13 billion might me in need according to the Housing and Urban Development Department.

On the other hand, many may think that the FHA is doing something right here. After all, isn’t the American Dream what this is all about? The chance of home ownership, no matter what has gone down in the past…giving you a second or even a third chance? ')}