Government Shutdown And Purchasing A Home In Huntsville and Madison AL

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Real Estate Agent with Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL

Government Shutdown And Purchasing A Home In Huntsville and Madison ALGovernment Shutdown

You say the shutdown doesn't affect you and you still want to buy a home then search here:  Huntsville and Madison AL homes for sale

Like D.C. and the Northern Virginia area, Huntsville and Madison AL has a lot of government workers who have been impacted by the shutdown.  However, there does seem to be some good news out there

Are you in the process of purchasing your home and are worried about the government shutdown, recent news from Freddie Mac may have you a little more optimistic these days.

The announcement, effective October 8, 2013, allows lenders to use signed federal tax returns as income verification rather than a tax transcript for loans, loan modifications, and certain other home loan programs.

 Dave Lowman, Executive Vice President, of Single-Family Business at Freddie Mac said, we're asking lenders nationwide to limit disruptions about the shutdown. "We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government.”

“Today's bulletin [issued October 7, 2013] is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors, during the temporary shutdown,” he explained. This news should comfort many potential homeowners affected by the government shutdown, in public and private employment, who temporarily find themselves without an income.

Lowman also reiterated the presence of forbearance provisions, which can be made available for a time period of three to twelve months to qualifying borrowers. “We are also reminding servicers of our forbearance options to assist qualified homeowners with Freddie Mac mortgages,” he added, “to minimize the shutdown's impact on our nation's families and communities."

Find out more about how the temporary government shutdown may affect your home ownership by clicking here.

Huntsville and Madison Alabama has shown a small slow down in new mortgages that I believe can be attributed to the shutdown, however I feel the seasonal slowdown also is contributing to somewhat slower sales.  Most believe the shutdown is a temporary bump in the road albeit an embarrassing one in the larger picture.  I'm working with nearly as many buyers now as I was earlier in the year.

You say the shutdown doesn't affect you and you want to still want to buy a home then search here:  Huntsville and Madison AL homes for sale

If you need a knowledgeable real estate professional in Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.

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Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Nick allowing the use of tax returns in place of tax transcripts is huge, but it also opens the door for fraud.  I hope borrowers are not stupid enough to give lenders tax returns which are different than what they submitted to the IRS.  Lenders are still required to get signed 4506T's (authorization to request tax transcripts) which means tax transcripts will be requested when the shutdown ends. 

Hummmmm I think I have my next blog topic, thanks Nick :)

Oct 12, 2013 08:50 AM #1
Rainmaker
3,205,322
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick very interesting turn of events and I am with George here will be another potential opportunity for less than ethical people to game the system!, Endre

Oct 12, 2013 10:03 AM #2
Rainmaker
931,603
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Hi Nick, I came across buyers had their Tax Returns done however did not submit to the IRS. The verification of 4506T is important. 

Oct 12, 2013 10:41 AM #3
Rainmaker
3,982,614
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The shutdown has hurt many in different ways just as leaving the status quo of this administration has hurt even more!

Oct 12, 2013 11:58 AM #4
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is great consumer information, Nick. I have a deal being help up right now because of the shutdown. I hope it ends soon.

Oct 12, 2013 04:11 PM #5
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Bottom line, the shutdown has just affected too many things in a negative way.

Oct 12, 2013 07:12 PM #6
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, I think the confidence level right now with buyers out right now is very low.    They don't know for sure they can close by end of year, despite the reassurance of the lender.

Oct 12, 2013 11:15 PM #7
Rainmaker
820,770
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Nick, I hadn't heard FHLMC had waived the 4506T.  That's really great news for homebuyers. 

Oct 13, 2013 01:32 AM #8
Rainmaker
1,317,958
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Hopefully this will be a positive impact on current real estate transactions and also that it is only temporary...wishful thinking that our government will get off its butt putting politics and self serving interest aside.

Oct 13, 2013 03:00 AM #9
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Nice update Nick to reassure buyers and sellers that we are still closing loans. I will be glad however when the shutdown and rangelings are resolved.

Oct 13, 2013 12:04 PM #10
Rainmaker
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Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Be creative and do the work around to make it happen. That's what real estate agents, brokers, REALTORS are so good at doing when the tough work needs to happen. And they roll up their sleeves, get to work on other financing programs, seller carried mortgages, etc.

Oct 13, 2013 11:37 PM #11
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Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTORĀ®

Nick: You can put me down for what The Real Debbie Reynolds said in comment #10. :))))

Oct 13, 2013 11:41 PM #12
Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Nick,

We need leaders and more positive thinkers like you - but then again there can only be one you and you're the best!

Oct 14, 2013 05:10 AM #13
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John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I'm seeing some buyers getting cold feet with the uncertain future. 

Oct 14, 2013 02:04 PM #14
Rainmaker
763,113
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

The money is still there Nick just as you say. Northern VA where we are has a higher concentration of gov employees than even the District of Columbia. The good news for Federal employees is that they will be paid  back wages...that has reduced concern big time. Meanwhile I still cannot go to Skyline drive or the Museums :-(

Oct 15, 2013 06:02 AM #15
Rainmaker
4,086,065
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, this shutdown may feel painless compared to running out of money.   I heard today our credit rating will begin to drop tomorrow.

Oct 15, 2013 11:11 AM #16
Rainmaker
723,329
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORSĀ® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Nick-I had not heard this one but it is good news, I think. Anyone stupid enough to submit fraudulent documents in this situation would probably have done it anyway. Tax records will be checked at some point.

Oct 15, 2013 02:43 PM #17
Rainmaker
2,498,928
Rebecca Gaujot, RealtorĀ®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Nick, I haven't heard this, but now that the government will be opening is good news. And, the government workers will be paid even though they did not work during the shutdown.

Oct 16, 2013 12:19 PM #18
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Well, the government is temporarily back in business.  At least for another 90 days.

Oct 19, 2013 09:10 PM #19
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Rainmaker
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Nick T Pappas

Madison & Huntsville Alabama Real Estate Resource
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