A serious question to ask, what does this mean to both buyers & sellers of Real Estate? The first important thing to consider is how long it lasts. The longer it lasts, the bigger the potential problems it can create for both buyers & sellers. When any government is not open for business there is an immediate deterioration of consumer confidence, which is never a good thing for any economy, especially one like ours that is just beginning it’s recovery. For buyers, especially the younger first-time homebuyers, certain USDA loans backed by government guarantees cannot be finalized for approval. The process can be delayed since people whose job is to approve these loans have been laid off since the shut down. For the sellers whose buyers are getting these types of loans, it is the uncertainty of not knowing when their house will close. For borrowers of conventional loans, they should determine if their banks have delegated in-house underwriters who can approve FHA loans, otherwise these loans will also be put on hold. The last time there was a government shutdown it lasted 21 days. We are all hopeful this one won’t last as long. In any event, regardless of where you stand on this issue, I think we all agree that we need a Government that is open for business. Good Luck!
