What If the Government Shuts Down

Share

I'm getting a lot of questions from Seattle area real estate agents, home buyers and home owners about what may happen with regards to mortgages in process.   Here's a few potential issues that I see:

  • 4506T (tax transcripts that are ordered from the IRS) may not be issued.  All conventional, FHA, VA and USDA loans require 4506Ts prior to funding. 
  • FHA loans may not be able to obtain insurance.  Our company CAN FUND FHA and PROCESS loans.  Obtaining the FHA insurance takes place after funding.
  • Transactions where HUD is the seller may be impacted. 

If you have a mortgage transaction in process, you may want to check with your mortgage originator to see if there are any possible implications to your transaction.

Hopefully this is a moot point post and our elected officials in Congress can come to an agreement on our budget.

Here's a 44 page outline of HUD's plans in the event the Government shuts down.  Hat tip to Kary Krismer.

Trackbacks

  1. Today’s News: What If the US Government Runs Out of Money?

    How will this affect real estate sales? Well .. I have asked Rhonda Porter of Mortgage Master Services for some answers. For a quick overview just click this link! Basically we could be in deep trouble with FHA loans and HUD home sales.

Speak Your Mind

*