As Democrats and Republicans fall all over each other trying to blame the other side of the aisle for the government shutdown, should you be concerned if you’re involved with a real estate transaction right now or in the near future? Umm – it depends.
Since the Department of Housing and Urban Development (HUD) is a government agency, any borrower who applies for or, has applied to get an FHA or VA mortgage will be impacted. Those temporary electronic highway signs on the side of the road that read, ‘Incident Ahead – Expect Major Delays’ applies here.
Since the vast majority of HUD workers were sent home early Saturday morning and they’re operating on skeleton crews, virtually no one is there to answer calls/emails, process paperwork or grant loan approvals. UGH!!!
My advice to anyone in this boat would be to get in touch with your lender and find out more specifics. You may have to extend mortgage commitment and settlement dates in your contracts so that they don’t expire.
Well, how about conventional loans? Will they also be affected?
Lenders who process and grant conventional loans will probably not be affected too much. Most people think that Freddie Mac and Fannie Mae who purchase and guarantee conventional loans are government agencies. Nope. They are only sponsored by the government so you should be OK.
Regardless of what type of loan a borrower needs, agents, sellers and buyers could face some delays and hassles obtaining tax records and other financials requiring certification by government employees.
So stand in line and wait your turn. You may not like how long it takes – – but you’ll eventually get waited on.