Get flood insurance now – it expires Thursday
The industry is preparing for another possible government shutdown Thursday, Feb. 8, at midnight, and since an extension of flood insurance is tied with the same bill in Congress, the ability to secure new flood insurance policies could expire at the same time.
It’s only been two weeks since Congress passed a bill to reopen the federal government following a three-day shutdown, and a repeat of that quagmire looms if lawmakers can’t agree on the terms of another extension.
What impact will real estate feel should the government close once more?
Most home sales should be minimally affected because applications for mortgages backed by Fannie Mae, Freddie Mac the FHA, and other agencies can generally continue to be processed. But closings could still be delayed because some of the agencies that verify mortgage information for lenders – such as the IRS and Social Security Administration – won’t be at full staff in a government shutdown. As a result, lenders could have to wait longer to get routine requests processed.
In addition, the real estate impact could grow if the shutdown lasts far longer than anyone predicts. The National Association of Realtors® (NAR) offers more information on its website.
For households buying a newly constructed home in a flood area, the transaction could be delayed until the government reopens if they don’t secure flood insurance before Thursday or get it from a private lender. Existing homes that already have flood insurance probably won’t be affected.
Source: Realtor® Magazine
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