Gene's Chicagoland Mortgage Blog: The Budget Showdown: What is Known & the Possible Outcome

The Budget Showdown:

What is Currently Known & the Possible Outcome

At a time when real estate markets could use more

certainty, we are now facing potential shutdowns on FHA-insured mortgage transactions courtesy of the current discussions being held in Washington, D.C.

     At this writing, we can only hope that business can continue as normal (or as close to normal as possible) pending the results of the congressional budget negotiations. It is now being reported that FHA can operate for a short period of time (even in the event that there is a government shutdown).

     How this all effects real estate deals already in process will hopefully be known very quickly. Until this knowledge is available however, I felt it important for my current clients and Referral Partners to understand that FHA AND VA loans can be affected if the budget is not passed.

   Those of us that were in business in 1995, remember that FHA loans were simply unattainable during that government shutdown. I'm certainly rooting for history to not repeat itself ... or for any shutdown for any period of time.

     Given that the housing market is now seemingly on the mend across the majority of the U.S., it would be almost cruel and ironic if government gets in the way of Buyers and Sellers conducting real estate transactions now. Mortgage Lenders will most certainly be handcuffed by this action/inaction of Congress.

     The timing of this budget showdown couldn't be worse. Providing Buyers or Sellers additional reasons to hesitate or lose confidence in our housing market is not a good thing.

Stay tuned as news develops regarding this matter over the next 24 to 48 hours. The results of the actions being taken in D.C. will impact all of us in the real estate and financing industries, plus our clients ... both current and potential. Even a temporary disruption in business will have a drastic impact on people's lives, especially those in the middle of their transaction.

I recommend that you and I stay closely in touch regarding our mutual transactions in process. As always, should you have questions or needs, please do not hesitate to contact me through any of the methods below.