This year we should see the surge of so called boomerang buyers, those who lost their homes to foreclosure but are ready to buy again. CBS News Business analyst Jill Schlesinger says 7.3 million people they lost in foreclosure or short sale between 2007-14. Well those things cause a black mark on your credit for up to seven years and we are coming up on the seven year anniversary where people are going to roll off this period. This year RealtyTrac said that we are expecting somewhere between 250,000 to 500,000 of people to come back into the housing market because their credit is clear. Not all 7.3 million boomerang buyers will come back into this market all at once but maybe about half over the next 8 years. The reasons are many of them are just scared, some just don’t want to be in the housing market anymore, some haven’t recovered their credit scores from other events and some don’t have the down payment or income necessary.
So something interesting is happening. Fair Isaac that’s the company that created the things FICO score is testing a new score system. That score will not be based on traditional methods they’re looking at other measures centered around do you pay your utility bills on time or do you move a lot. Fair Isaac said that there are 53 million Americans right now who don’t have creditor or have shaky credit. Of those about 15 million would qualify to borrow with their new score system. They will probably roll it out by the end of this year this could be another opportunity for people to get back into the borrowing market and possibly help the economy.