On behalf of Thaler Law posted in business formation on Monday, April 29, 2019.
When the market crashed, leading to the housing crisis that lasted from approximately 2006 to 2014, millions of people lost their homes or found themselves living in desperate financial situations due to mortgages they could no longer afford. Fortunately, the rebound in the economy means that many of these people are now financially able to buy homes again. While this is exciting, boomerang buyers would be wise to proceed with caution, taking steps to avoid future complications, including potential real estate litigation.
Buying a home is an exciting step, especially for California buyers who lost their homes due to unfortunate circumstances. The origins of the housing crash came from lenders approving subprime mortgages to people who could not qualify for other types of mortgages. In just under a decade, there were more than seven million foreclosures and almost two million short sales.
People who are re-entering the market would be wise to take steps to ensure they do not end up buying more house than they can afford. It is also prudent to be fully aware of the type of mortgage a buyer is getting, including the terms of interest and other details. The more thorough a buyer is, the less likely he or she will experience problems down the road.
In addition to the financial issues that may come from a hasty home purchase, buyers would also be prudent to consider common pitfalls in an effort to avoid real estate litigation. California buyers will find great benefit in having strong, fair purchase agreements, a full understanding of the legal terms of a contract and the guidance of an experienced real estate attorney. Before moving forward, boomerang buyers may want to seek an explanation of how they can protect their interests.