Government Shutdown and Your Transaction

Americans are paying a high price for the president’s shutdown (19 days and counting) of the government. Forcing families to go without income to pay bills, mortgages, health care, day-to-day costs of living to get concessions is heartless. Far greater pain is being endured than the inconveniences the shutdown is having on home sales and purchases. But that doesn’t mean we shouldn’t be prepared to anticipate trouble for our buying and selling clients.

Home buyers expecting to use a loan guaranteed by the United States Department of Agriculture should consult their mortgage lender immediately. These loans targeted for designated rural area purchase may not be approved. Owners who have accepted offers where the buyer is using this USDA loan may not be able to close on their sale and subsequently be at risk to close on their purchase.

Check with your lender to see how the shutdown is impacting the turnaround time on Social Security and Internal Revenue Service inquiries. Verification of self-employed borrowers tax returns could be hindered. Definitely check with the lenders to see if FHA/VA inspections are affected before committing to offers with FHA/VA financing.

This shutdown will end. That’s certain. So is the fact that people are getting hurt. If you’re feeling the pain I empathize with you. If you planned to buy or sell and your plans are on hold, let me know. I have some ideas.