With the current government shutdown, many prospective buyers and sellers are nervous as to what the impact will be on them. There is an impact on some mortgages but some will still be able to close. The October 2013 government and it’s impact on SW Florida real estate transactions is important to be aware of if you’re in the market to buy or sell in October 2013.
FHA has announced that they will not be able to commit for multi-family programs during the shutdown but will continue to pay claims and will collect premiums. There will be delays with the processing of FHA loans.
VA loans will continue to be processed but there will be delays.
Flood insurance policies will continue to be issued and processed as the National Flood Insurance Program is funded with private funds from homeowners and no tax monies are used to operate FEMA.
What may have a negative impact is the IRS. The IRS is closed and not processing any forms, requests, refunds or tax transcripts. FHA and VA loans don’t require transcripts to close but conventional loans do require them so there will be delays if lenders require those to close. Some lenders are working to get around that requirement by changing their policies and allowing the income verification to occur later.
The short sale programs through Making Home Affordable, HAMP and HAFA will continue to be funded and proceed as normal as they were funded through a government act and are mandatory spending.
If you’re selling your home, please make adequate inquiries of potential buyers to make sure that you’re protected during this time. If you’re in the market to buy, it’s important to find out what your lender’s policies are regarding tax transcripts and issues during this current government shutdown.
For more information on the October 2013 government shutdown and impact on your real estate transaction in Naples, Bonita Springs, Marco Island and Estero, please give us a call at 239.293.0246.
Thanks,
Mike Bryant, Realtor &
Anna Bryant Attorney & Realtor
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