With Congress and the President at an impasse, it's worth looking at the impact of a government shutdown on real estate.
Rob Clark, our go-to mortgage guy, has shared a list from PHH Home Mortgage on what might happen during a shutdown:
- Tax transcript - If the IRS is on furlough, tax transcripts will not be available..
- Flood insurance - Borrowers may have difficulty obtaining flood insurance through FEMA.
- FHA - HUD may not support FHA Connection during their hiatus, and therefore we will not be able to order case numbers or perform other functions in FHA Connection while they are on furlough.
- Rural Housing - We are not sure of the impact to GUS since that system was created since the last shutdown in 1995. However, we should anticipate the system will not be available. In addition we will not be able to get conditional commitments during the shutdown.
- VA - The system by which VA appraisals are ordered will not be available.
Buyers must also take into account the loss of income brought on by a furlough and contact their lender immediately. Let your agent shoulder part of the burden too. Keep them apprised of your situation at all time. In turn, they will work with the sellers agent to keep the contract in play.
Personally, I don't think we will reach a shutdown***, but a advance preparation and understanding never hurts.
Questions? Give me a call at 703.927.4554.
**** although my hopes are dimishing rapidly