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2.5 million Americans will recover from foreclosure or bankruptcy

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Staff Writer | October 27, 2016
Many U.S. consumers are coming back from harder times, dusting themselves off and re-entering the mortgage market with a fresh perspective and a cleaner slate.
Analysis   Boomerang borrowers are showing responsible behaviors
Foreclosures, short sales and bankruptcies remain on a credit report for seven years, which means these items are due to fall off the credit files of 2.5 million consumers between June 2016 and June 2017.

Experian's latest analysis shows that 68 percent of these consumers are scoring in the near-prime or higher credit segments. The opportunity for this group to qualify for mortgage loans is growing.

The study takes a closer look at these potential borrowers and explores the consumers who foreclosed or short-sold between 2007 and 2010 and have since opened a new mortgage.

These "boomerang borrowers" are showing responsible credit behaviors, have improving credit scores and are current on their debts.

The research shows that the people in the short-sale category are rebounding at a higher rate than those who foreclosed, and are making their payments on time.