What Every REALTOR® Wants You to Know About the Government Shutdown
Several years ago, I broke the little toe on my left foot. Not a serious injury, I’m sure you’ll agree, but a break never the less. As a REALTOR® and not a doctor, the state of Maryland recognizes me as an “expert” in the field of real estate, but not in the field of medicine. Never the less, I believe I can say with confidence that my medical advice is to avoid breaking a toe (or anything for that matter).
As my doctor was wrapping my broken little toe to the toe next to it, he said, half chuckling, “You are about to find out how your body is all interconnected.” As I tried to stand, walk, or even balance myself I realized how the toes – even the little toe – was used to maintain balance. The partial government shutdown is no different. The government agencies are all interconnected.
When the partial government shutdown was first announced, FHA announced that they would stop processing mortgage loans insured by the FHA. A few days later, the FHA reversed their decision and announced that they would process loan applications, although they would only process loan applications for single family homes, and not for condos.
That may sound like good news, but in reality, when a person applies for a mortgage, their income is verified by checking their income from their tax records. During the partial government shutdown, the IRS workers are not working, making the verification of the tax records difficult, if not impossible.
The FHA announced that if the government shutdown is “brief”, the FHA does not expect the housing market to be “…significantly affected.” Then the FHA stated that most employees of the Department of Housing and Urban Development are furloughed and not working and that applications for loans will be delayed. The definition of “brief” as used by the FHA was not provided.
If you are thinking of buying or selling, talk to a real estate professional – talk to a REALTOR® who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or call me at 301-712-8808 or email me at RolandLow1@gmail.com.