Government Shutdown…What happens to my FHA closing Tuesday?
Let’s pretend that it does not matter which side of the aisle you are on. This is not left or right, red or blue, democrat or republican. This is our collective government and I keep hearing both sides say this is what the people want. What the people want is for those elected to show up at work and do your job. What the people want is to not be told what they want. Grow up, shut up, and show up at work to do what you were elected to do. Keep the government running!
As my blog is primarily a real estate/mortgage message I take this opportunity to make you aware of what is possible in a shutdown means to real estate agents and their clients.
Fortunately while 90% of all loans are backed by the federal government a great portion of those are backed by Fannie Mae and Freddie Mac and while those two entities are government-run they are funded from the fees they charge. Unfortunately The FHA does not work the same way and while the number of FHA loans have fallen off recently the FHA accounts for a large percentage of the loans currently being processed (roughly 60,000 per month). During a shutdown the FHA will be unable to insure loans and their staff will be unavailable to underwrite and/or approve new loans. According to HUD in the event of a shutdown only 350 of the 9,300 employees would be available to work.
This so called economic recovery is being pushed (not pulled) by a small housing recovery. Maybe, just maybe we could stop pointing fingers and laying blame based on party affiliation and not snuff out the small flame by delaying closings on FHA loans in the coming week.
If you have an FHA loan closing be prepared as I am not certain anyone currently knows what to do. By Peter Buchsbaum, Gateway Funding, Website: http://www.peterbuchsbaum.com
Actually, this is a great time to buy at Lake Oconee if you qualify for a loan! Sellers whose homes have been on the market for a while and have not sold, are reducing the prices to initiate a quick sale. The loan rates are still low. Below are links to our listings that have been reduced. Click on the address to see their details.
1291 Blue Springs Drive $ 329,000
1111 Eagle Bluff Court $ 1,295,000
1115 Wharfside Court $ 429,000
1161 Big Water Circle $ 734,500
100 Whitney Street $ 659,500
312 North East Street $ 94,500
111 Lakemore Drive $ 499,900
108 Forest Ridge Drive $ 639,900
1050 Billy Mantle Lane $ 279,000
1400 Club Drive $ 145,000
156 Long Island Drive $ 860,000