A Government Shutdown?

Question

Hey guys! so I was supposed to have my closing this Friday on a HUD home but my agent told me today that because of this government shut down we can't proceed with the closing yet. im not a big politics guy so I wasn't aware of this. does anyone's have anymore info or a solution to help me out? any advice would be appreciated.

thanks!

Tom Gimer · Answer

I'll let everybody know this week whether this is an issue or not... we have plenty of HUD deals working right now.

Matt K. · Answer

Here's the "special rule"

https://constitution.laws.com/american-history/constitution/constitutional-amendments/27th-amendment

Greg H. · Answer

How does your agent know this ?  My recollection is that this is not the case. HUD personnel are not involved with the closing process. The Asset Management company handles the closing package via the P260 system as well as the execution of the deed

Additionally,  bids will contribute be awarded as normal. The only difference is that "manually accepted " aka lower bids typically are not accepted during this time as they require HUD approval

Tom Gimer · Answer

Hey John... this Washington is in the District of Columbia (DC).

Russell Brazil · Answer

You will just have to wait til the government opens. Nothing you can do about it.

Account Closed · Answer

Do you know off top of your head what percentage of mortgages are using a government program right now?

Between FHA and USA it will be a fairly large number.

It might be a good idea to consider some special contract language for the next few months.  Something that would help protect the buyer who's contracts cannot close because of at shut down.

John Thedford · Answer

BATF that handles this is in West Virginia.

Matt K. · Answer

everything, it's a huge pain in the ass.... Only essential services are open/operated.

Russell Brazil · Answer

Here is a nice little write up on how the shut down could affect lending. The interesting part which I hadnt thought of was verification of tax returns with the irs.

https://www.nationalmortgagenews.com/slideshow/5-ways-a-government-shutdown-will-affect-mortgage-lending

John Thedford · Answer

It affects me efiling F3 tax free transfers of machine guns, and I would imagine lots more. Military pay, etc. Probably doesn't affect those in power in WA they always find a way to make special rules for themselves.

A Government Shutdown?

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