Posted on 10/05/2013 9:34:46 AM PDT by BenLurkin
COSTA MESA (CBSLA.com) — The government shutdown could bring the Orange County real estate market to a standstill.
“We have to verify tax returns through the Internal Revenue Service for all loan transactions, and so we can’t do that right now with the government being shut down,” said mortgage broker, Lauren Stipe.
Stipe said buyers can’t get a loan without the 4506 forms.
“(I have clients) waiting and, basically, hoping that we’ll get the results back in time for them to close escrow on time,” she said.
Stipe is hopeful the shutdown will end soon. But if it doesn’t, she’s worried buyers will fall out of escrow and be forced to cancel their contracts.
“I think worst case scenario, if they remove loan contingencies, they have the potential of losing their deposit on the house,” she said.
KCAL9’s Stacey Butler reported that so far, there have been few disruptions. Most loans close at the end of the month and take 30 to 60 days.
Traditional loans aren’t the only ones affected.
Loans backed by agencies like the Federal Housing Administration could also be in jeopardy as the FHA’s diminished staff struggles to keep up with processing.
“I’m hoping that like previous situations, they’ll resolve it within a matter of days,” said Stipe.
The document has been gotten at application ever since I remember. It was rare however the data was actually pulled. It still isn’t on every loan; but a high percentage now have it pulled.
There are several federal agencies who regulate mortgage lending; newly including the CFB.
I can’t tell you for sure which specific agency requires this. The investors do for sure; Fannie, Freddie, FHA and VA.
It does catch some fraud; but there are probably other ways that could be done.
The mandatory implantation of subcutaneous microchips containing all of our personal data ("Mark of the Beast," anyone?) and the installation of video cameras in our bedrooms would likewise make it "easier" and "more convenient" for law enforcement agencies, credit card companies - heck, even corner barbershops - to do business.
Mark my words: In 100 years, characters like yourself will be complaining that they'd have to close shop if such invasive techniques were to be outlawed (i.e., they'll have become de rigueur by then).
Regards,
There, fixed it!
That's how FReepers think: They don't want the invasive bureaucratic yoke to be fine-tuned, improved, or otherwise put back into place - they want it destroyed.
Regards,
I don’t disagree with you wrote. But until that happens; you have a business to run.
The solution of course is form 4506 Z.
The -Z form is the regular 4056 form with a line at the bottom saying “The 4506 form is waived during shut down. “
Just get the returns and examine them
correct
Uncle Chip, just because some areas have weather or natural issues is no reason to control everyone’s freedom to transact their property. And most of the OC has no issue.
Who is controlling your right to sell your property because of those things???
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