While the Feds bicker back and forth over spending the current shutdown is impacting the closing of Escrows. The FHA is getting loans processed but with the IRS closed, lenders are unable to obtain form 4506-T. Form 4506-T, the income verification form, is required by many lenders as a condition of the loan approval process. Unless your lender or underwriter is able and willing to waive this requirement, funding of the loan is at risk. If you are in the process of purchasing a home with escrow expected to close shortly, consider taking the following steps:
- Contact your lender and talk to the lender about any delays being caused by the shutdown. If there is a problem immediately contact your Real Estate Agent. Ask you agent to check on any loan contingencies to extend them so that your earnest money is not at risk.
- Have your Agent communicate with the sellers and warn them of the potential issue of delayed closings. Communicating and being proactive can help alleviate many potential problems and reduce the stress on all parties to the sale.
- Renegotiate with sellers on closing dates, if possible. Most Sellers will be cooperative as the only way a seller can close with a different buyer is if they find a cash buyer.