Some Mortgage Deals Are In Limbo As Government Shutdown Drags On
It's day. Twenty one of the partial federal government shutdown and it's causing big financial concerns for hundreds of thousands of people who aren't getting paychecks today. Here's one example, some furloughed workers can't refinance their mortgages or by homes because lenders can't verify their income right now and his NPR's. Yuki Noguchi reports even those who aren't federal employees are getting stuck in limbo. Libby, Anderson's divorce finalized this week she'd hoped her ex-husband would finally move out of their damone home where they've been living separate lives under one roof. It was going to be you know, as soon as today. I mean, we were really going to take care of it today the day after it was final, and then he would be out. But no her ex is a furloughed air traffic controller the shutdown means he can't split his assets with her including his government retirement account. She needs those funds to refinance the house under her name. Also, he can't qualify for his own mortgage because he hasn't been paid for three weeks. The. Government stalemate also means they haven't explained the pending change to their young son in a four year olds had you can't say, you know, mom and dad are going to be living in different places. And then you say well when where and we don't have those answers yet as the shutdown drags on more people will find themselves facing similar roadblocks refinance applications are booming as mortgage rates felt nearly half a percentage point in recent weeks, but furloughed workers can't lock those rates in anyone looking to buy or refinance may have a harder time getting through to federal agencies to verify income taxes or get some loan information from the Federal Housing administration, which remains closed rural home loans guaranteed through the department of agriculture are on hold to Margie hockberg is president of the residential mortgage center. She says her Rockville, Maryland business will likely see a ripple effect. This is going to be a house of cards because if I can't close. By your house. Then guess what? You can't buy the house that you are buying even though you don't work for the federal government to deals nearly fell through this week. But Hoff Berg persuaded the lenders to waive certain paperwork. She says banks strict requirements of borrowers create many potential snags. I hope would be that the lender start becoming a little bit more flexible because it's not in their best interest to not do loans either. There's some precedent for these problems during the two thousand thirteen shut down two percent of home loans. Never closed according to the national association of realtors. But that one lasted only sixteen days, the headache really is related to delays Lawrence Yun is the group's chief economist he says seventeen percent of home loans closed late due to backlogs most deals get done. But Yoon says he worries more about possible impact on homebuyer psychology, along with the shutdown it causes greater uncertainty about the economic direc-. Action which means that even the private sector employees may be less willing to purchase home over time. Greg Bush agrees what furloughed employees are going to go out and buy a house right now when there's no definitive date of a compromise. But is vice president of first savings mortgage a big player in the Washington DC area. He notes the impact on contractors who make up the largest segment of the federal workforce. There's a lot of contractors here that aren't getting paid people who own those companies they're not going to buy the able to refinance. And they're going to start laying people off those people, I think will be most affected for Libby Anderson. The new divorce say the shutdown cannot end soon enough while her break up with her ex has been amicable sharing space is taxing it. Just feels like you're at the finish line and the finish line keeps getting moved. But you're exhausted. There's not much you can do about it. You can't move the finish line. Closer because it's totally out of our control. The latest expected to move out was April first. But now Anderson worries the shutdown could outlast that obviously I I wouldn't kick him out into the street, but we really both need to move on and have some physical distance from each other until then they will continue to retreat to separate corners of their house. You know, Gucci NPR news Washington, and we're following a developing story this morning. Authorities say they have located thirteen year old Jamie Kloss, she's been missing since October when police discovered her parents dead in their home in Barron, Wisconsin, investigators got thousands of tips that were massive search parties to try to follow up on those tips last night. The Barron county sheriff's department announced that Klaus has been found alive about an hour north of baron CBS affiliate W C C O spoke with clauses aunt suit, Nyberg Allard last night. Harry's earlier today. Print and print that were chewing. They come to not be true. I just ship myself. Totally don't sit that today was going to be the day. Then to find two hours later that she was phone. I I cannot believe this. The sheriff's department says shortly after class was located a suspect was taken into custody that apartment didn't provide any further information, but plans to hold a press conference later this morning, we'll continue to monitor this story and renew any developments.