Potential Government Shutdown -- Issues with Closing?

[Anonymous]

Anonymous wrote:OP here. We checked with our lender and we were told that we wouldn't be able to close if there is a shutdown and income/employment can't be verified. Whether the buyer is furloughed doesn't necessarily matter to our lender. Each shutdown is different and our lender noted that whether income and employment verification can happen may vary shutdown to shutdown and agency to agency. It did cause problems for some (but not all) federal employee buyers who didn't anticipate a the last shutdown, apparently. While we haven't decided what to do going forward, I thought it best to respond and let others know given some of the varied responses on this thread. Feds should obviously talk with their lender and evaluate their own risk tolerance if they want to waive the financing contingency in the coming days. Hopefully the CR is passed soon...

I haven't had this experience personally, but that was what I was thinking - if the employment verification has to happen within a few days of closing, you might be in a bind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. We checked with our lender and we were told that we wouldn't be able to close if there is a shutdown and income/employment can't be verified. Whether the buyer is furloughed doesn't necessarily matter to our lender. Each shutdown is different and our lender noted that whether income and employment verification can happen may vary shutdown to shutdown and agency to agency. It did cause problems for some (but not all) federal employee buyers who didn't anticipate a the last shutdown, apparently. While we haven't decided what to do going forward, I thought it best to respond and let others know given some of the varied responses on this thread. Feds should obviously talk with their lender and evaluate their own risk tolerance if they want to waive the financing contingency in the coming days. Hopefully the CR is passed soon...

I haven't had this experience personally, but that was what I was thinking - if the employment verification has to happen within a few days of closing, you might be in a bind.

Wouldn’t that mean nobody (unless they were paying all cash) could close if they needed income/employment verification from the IRS (regardless of whether they were a fed)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. We checked with our lender and we were told that we wouldn't be able to close if there is a shutdown and income/employment can't be verified. Whether the buyer is furloughed doesn't necessarily matter to our lender. Each shutdown is different and our lender noted that whether income and employment verification can happen may vary shutdown to shutdown and agency to agency. It did cause problems for some (but not all) federal employee buyers who didn't anticipate a the last shutdown, apparently. While we haven't decided what to do going forward, I thought it best to respond and let others know given some of the varied responses on this thread. Feds should obviously talk with their lender and evaluate their own risk tolerance if they want to waive the financing contingency in the coming days. Hopefully the CR is passed soon...

I haven't had this experience personally, but that was what I was thinking - if the employment verification has to happen within a few days of closing, you might be in a bind.

Wouldn’t that mean nobody (unless they were paying all cash) could close if they needed income/employment verification from the IRS (regardless of whether they were a fed)?

I’m unsure how income verification works, but at my agency employment verification is done by a real person in our Human Resources shop. I know at least one other agency has contracted that out to some private company and their online system.

[Anonymous]

The lender might have issues getting your tax return from the irs. Get ahead of that by having them pull it now. Second possible issue is employment verification. Ask your lender what they can do now to prevent this from being an issue later.