Real Estate concerns are surfacing because of government shutdow - WSLS 10 NBC in Roanoke/Lynchburg Va

Real Estate concerns are surfacing because of government shutdown

Posted: Updated:

A drive through the Cave Spring part of Roanoke County shows neighborhoods dotted with for sale signs in front yards.  The real estate market is slowly making a comeback.  David Henry is the Regional Director for Atlantic Bay Mortgage Group and says the government shutdown isn't helping the Roanoke Valley market recover.

He says, "Any delays or hiccups we have in the mortgage business and real estate business certainly doesn't help us grow."

We found the government shutdown has put all USDA loans on hold.  USDA loans are often good options for first time home buyers because no money is required as a down payment on the purchase.

Some areas qualify and some don't.  Guidelines changed October 1st but right now there is no way to see who does and doesn't qualify because the web site is also shut down.  When you try to log on to the USDA web site, users get a notification that reads, "Due to the lapse in federal government funding, this web site is not available. "

Another real estate effect for local lenders is the fact that they can't get tax transcript information from the I.R.S. to verify household income for clients.  Also, there is no way to verify tax payments from a borrower.

Atlantic Bay Mortgage Group and some other lenders are closing loans without documentation that's normally required.   Those groups will then collect that information once the government begins normal operation.

Henry says, "We are doing that to help clients get into the homes.  There is not a tremendous risk, but it does put some additional risk on the lenders out there."

Even if you aren't buying or selling a home the shutdown has the potential to impact all homeowners.

Henry adds, "Even if you aren't looking to buy or sell your home you are still worried about the value of your home."

We've learned that if home sales are slow, property values may go down which leads to less money being paid for property taxes.  The shutdown may create a cycle that eventually affects everyone.

Henry says, "It really has a big impact both to the government and to the private sector."

  • Most Popular StoriesMost Popular StoriesMore>>

  • Alexis Murphy's family speaks about Taylor sentence

    Alexis Murphy's family speaks about Taylor sentence

    Wednesday, July 23 2014 7:23 PM EDT2014-07-23 23:23:07 GMT
    Randy Taylor was sentenced to two life sentences today in a Nelson County court.
    Randy Taylor was sentenced to two life sentences today in a Nelson County court.
  • Arizona inmate dies 2 hours after execution began

    Arizona inmate dies 2 hours after execution began

    Thursday, July 24 2014 12:22 AM EDT2014-07-24 04:22:38 GMT
    The U.S. Supreme Court cleared the way for Arizona to carry out its third execution in the past year Wednesday following a closely watched First Amendment fight over the secrecy surrounding lethal injection drugs.
    A condemned Arizona inmate gasped for more than an hour and a half during his execution Wednesday before he died in an episode sure to add to the scrutiny surrounding the death penalty in the U.S.
  • Mysterious "woman in black" spotted in Tennessee

    Mysterious "woman in black" spotted in Tennessee

    A mysterious figure is capturing the attention of social media. She's been nicknamed "the woman in black" and she's been spotted in different parts of east Tennessee including Madisonville, Athens, Sweetwater and now Morgan County.
    A mysterious figure is capturing the attention of social media. She's been nicknamed "the woman in black" and she's been spotted in different parts of east Tennessee including Madisonville, Athens, Sweetwater and now Morgan County.
  • Floydfest attracts people from all walks of life

    Floydfest attracts people from all walks of life

    Wednesday, July 23 2014 11:26 PM EDT2014-07-24 03:26:58 GMT
    FloydFest 13 kicked off on Wednesday. Thousands of people from different walks of life will attend various events. Some come to the music festival to escape the monotony of everyday living."
    FloydFest 13 kicked off on Wednesday. Thousands of people from different walks of life will attend various events. Some come to the music festival to escape the monotony of everyday living."

  • US pushes for truce as Gaza battle rages

    US pushes for truce as Gaza battle rages

    Thursday, July 24 2014 12:52 AM EDT2014-07-24 04:52:54 GMT
    Dozens of Palestinian families trapped by clashes between Hamas militants and Israeli troops are scrambling to flee a southern Gaza Strip neighborhood as Israel reported that two more of its soldiers have died in...
    The United States announced signs of progress in cease-fire talks Wednesday, but prospects for a quick end to the fighting were dim as Palestinian families fled fierce battles in southern Gaza and the death toll rose to...
  • FAA lifts ban on US flights to Tel Aviv airport

    FAA lifts ban on US flights to Tel Aviv airport

    Thursday, July 24 2014 12:41 AM EDT2014-07-24 04:41:39 GMT

    The Federal Aviation Administration has lifted its ban on U.S. flights to Israel, which it had imposed out of concern over the risk of planes being hit by Hamas rockets.

    The Federal Aviation Administration lifted its ban Wednesday on U.S. flights in and out of Israel, which the agency had imposed out of concern for the risk of planes being hit by Hamas rockets.
Powered by WorldNow

WSLS 10, P.O. Box 10
Roanoke, VA 24022-0010

Telephone: 540.981.9110
Fax: 540.343.3157
Email: news@wsls.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.