Apr 8, 2011

How a Governmental shut down will affect Real Estate

The possibility of a Federal Government shutdown tonight could have some adverse effects on buying or selling a home right now. The people affected are those applying for a mortgage or in the process of buying. Unless you are paying cash or your mortgage loan has already passed through underwriting, you may be in for a delay.

The primary reason is because IRS Tax Transcripts are now required on all loans under the Fannie/Freddie/FHA/VA/USDA guidelines. The IRS will not be able to process them and lenders will be not be able to close without these transcripts.

Also, many borrowers need to show a 2010 income from their newly filed tax return in order to qualify for a loan. If you need IRS verification of the submission or are providing proof of your 2010 Tax Return, you may be sidelined until the government is back up and running.  [where: 75230]

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