Effects of Government Shutdown

[oldtowngrill]

In the event of a govenment shutdown it's rumored that FHA loans and IRS processing could cease (Income verification for underwriters).  Does anyone have a clearer, non-rumor based understading of the potential effects?

[Heavanly1]

I was wondering the same thing.  As a federal employee who is currently under contract for my first home, I have two major concerns:

1.  If this furlough last more than one week, will this effect my ability to get through underwriting?

2. If FHA isn't guaranteeing any loans during the shutdown, would closing dates need to be pushed back to account for this delay?

Hopefully, someone else here will have some answers.

[oldtowngrill]

Ouch, way worse boat then I'm in.  I hope it all works out for you and good luck!!

[Anonymous]

I'm closing on a USDA Direct loan on the 15th. I just spoke to my loan officer at the USDA office, and she said she's working to get everything closed up on their end for my loan by today in the event of a shutdown tomorrow. She seems really worried, but she also didn't know exactly how it would effect my particlar position. She said she wants to get everything done just in case.

[Anonymous]

We're in escrow and set to close at the end of the month (FHA loan). I of course freaked out about this government shutdown possibility and called our LO. He basically told me that no one has any clue how the loans will be affected until/if it actually happens. Not until then will HUD send out instructions to the lenders on how to proceed. Great! Yet another thing to stress about.

[mauve]

I think this may be part of the reason my substitute loan officer is not sending me documents.  *annoying*

[llecs]

I just called my last LO who has been in the industry for a couple of decades at least. I asked her about the impact of VA, USDA, and FHA-based loans in the time of a government shutdown. She said that case numbers are assigned to each loan and her bank, at least, will process the loan on the assumption that the government will reopen again in the future. She said that her organization (a major mid-Atlantic area bank) has not issued any notices to her about a shutdown and was told by colleagues to proceed as they normally would. Now she doesn't have any closings at the moment and doesn't have an immediate need to get any case numbers, but she did say that she'd see it as an issue if you couldn't get those case numbers. I then asked her about how they handled USDA. She said she imagines that without a functioning agency, the inability to get a case number would be on par as it was with USDA. I also asked her how they handled the shutdown in the 90s, but she said she couldn't recall any issues or problems then.

[Heavanly1]

That's good to know, especially for many of us on here who have FHA loans. I know that my LO has already had my FHA case number assigned, so that's one less thing that I have to worry about.

I guess I'm more concerned with what impact having no paycheck, even if only temporarily, will have on me getting through underwriting. Thankfully, I'm not scheduled to close until June so I'm only hoping that this mess will be worked out by then. I figure that if this last for a few weeks, at the least I'll have to write a letter of explanation to the underwriter about why I blew through a couple of thousand in savings!

[Anonymous]

I have been trying to find out the latest on this situation, I was planning to have my score pulled by LO tomorrow...has anyone heard of any changes???

[mauve]

There's this thing called news, mst

http://firstread.msnbc.msn.com/_news/2011/04/09/6439768-in-final-hours-breakthroughs-compromises-and...