Local realtors in the lower Hudson Valley have not mentioned this as a problem, but possibly this is a situation they don’t want to address and hope it clears up before any damage is done.
The Money Watch does raise a good point when it say that it not only furloughed government workers who are facing problematic issues. Also, anyone needing information from, say the IRS or Social Security, could face a delay in making a home purchase due to cutbacks in staffing.
Here is part of the story from CBS/Market Watch:
When hundreds of thousands of federal employees were furloughed, there were concerns that the inability to get records from the IRS and the Social Security Administration, along with insurance from the Federal Housing Administration, would bring home sales to a halt. Lenders use IRS data to check income, and information from Social Security confirms borrowers’ identities.
And the story adds:
But where there’s money there’s a way. Last week banks re-assured potential borrowers that they would come up with “work-arounds” for income verification, and so far they have. Many banks are following the lead of Fannie Mae and Freddie Mac, which only require IRS verification if the borrower is financing multiple properties.