ABC 6 - Search Results
Shutdown Threatens Ohio Housing Market
COLUMBUS (Chris Vanocur) -- Just as Ohio's housing market is starting to recover, the government shutdown is threatening to stop its momentum cold.
Location, location, location. That used to be the real estate rule of thumb. But with the government shutdown, the new "for sale" slogan could be delays, delays, delays.
Marianne Collins, the Executive Director of the Ohio Mortgage Bankers Association, told ABC 6/FOX 28,
"I think there will be delays. I don't think it's a time for real estate agents to be limiting their contracts to 30 days to close."
A big part of the problem is paperwork like the IRS Form 4506-T. It's required by many lenders, but with government workers furloughed, there may not be enough people to process all the ones the government receives.
Michael Farrell, an Ohio mortgage Consultant, says, "As the shutdown continues and furloughs are continued, processes can start to slow down more and more and I think consumers need to be very aware of that."
Real estate experts say the longer the shutdown goes, the harder and slower it may be to get a loan and a house. This includes FHA and VA loans. While they may not get rejected outright, they could be delayed.
As Marianne Collins put it, "It will come to a point where people will panic if it goes on for very long."