What If the Government Shuts Down
April 8, 2011 by Isabelle Bolliger · Leave a Comment
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.
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