Government Shutdown Could Delay Duplex Loans

said on October 3rd, 2013 categorized under: Financing, Legislation

duplex loans stalledSometimes, it seems like a federal government shutdown doesn’t impact our lives. After all, we’re still getting the mail, and most of us are still going to work every day.

However, if you’re in the process of buying or refinancing a duplex or single family home, the government shutdown may actually stop your plans.

When you apply for a duplex loan, the lender asks for a copy of the last two years of your tax returns. To make sure you’re telling the truth, they use something called a 4506T, which allows them to verify with the IRS that the tax returns you provided match the ones you gave the government.

Guess what?

Thanks to the government shutdown, the IRS is closed. And following all of the mortgage fraud committed during the real estate boom, the lenders aren’t likely to just take you at your word.

So, until the IRS opens back up, you may not be able to get a loan.

Call your Congressman. No matter what side of the debate you’re on, sooner or later, this will affect us all.