Our government is facing another shut down on April 28th? What does this mean?
Well, homebuyers and sellers could be subject to more headaches than usual before their deals close.
Any borrowers applying for an FHA or VA mortgage could run into delay if workers from those departments are sent home, and there’s no one available to assist in processing the loan. In fact anyone applying for a home mortgage could be in trouble as federal workers from say the Internal Revenue Service or the Social Security Administration may not be available to verify important home loan documents. That’s often required if something in an application doesn’t match the information associated with the loan or the credit report, even if it’s just a typo. If the lender tries to verify his numbers and no one is at work to answer the phone, that borrower could be out of luck.
And yes, this does happen. In fact it happened in 2013 when Republicans like Ted Cruz and Sarah Palin shut down the government because they didn’t understand how the debt ceiling worked. Remember? Then they got mad because out national parks and monuments were closed. Yes. That actually happened. And yes, it halted and delayed thousands of home loans. In fact, during that government shutdown, according to a December 2013 survey by the National Association of Realtors, roughly 17 percent of home sale closings were delayed.
I know firsthand. I was able to get my client into a HUD property just days before the last shutdown way back in 2013 when you could still find a 2 bedroom condo for $220,000 and little known brokerage called Shorewood Realtors dominated South Bay real estate.
Need a realtor that knows the ins and out of a transaction and can foresee obstacles up ahead. Call me… 310-722-5959.