GRAND RAPIDS, Mich. (WOOD) - As if buying and selling a home isn't stressful enough, Washington has managed to throw some uncertainty into the mix for some buyers and sellers.
"I have a son that was applying for an FHA [Federal Housing Administration] mortgage that will likely be stalled now," Sandy VanderLaan wrote on WOOD TV8's Facebook page.
But there's some good news for Sandy's son and others.
While the U.S. Department of Housing and Urban Development is closed with many other federal agencies, the law requires a backup for processing loans in the event of a government shutdown.
"In light of the fact that they all need to have some sort of a contingency plan, we expect that loans will continue to be approved, will continue to go through. Depending on where they are in the process, there might be some slow down," explained Grand Rapids Association of Realtors CEO Julie Rietberg.
There are some exceptions. For example, loans though the U.S. Department of Agriculture will not be processed.
While those loans are a small part of the overall number, it's a big deal for Darin Forsythe. The buyer of his Wayland home is using a USDA Rural Development loan.
"I can't close on the house I'm selling and the one I'm buying. Thanks government," Forsythe wrote on Facebook.
Another potentially more widespread issue is government form 4605 T. That form is required on all real estate transactions, and helps lenders verify income through Internal Revenue Service records.
The problem is that the IRS is shut down.
But the feds have relaxed the requirement during the shutdown, and Rietberg says lenders have other ways of verifying income.
"There are a lot of checks and balances that are in place regarding loans today that didn't exist 10 years ago. So I think there's a lot more reason to close than not to close," said Rietberg.
She added she's not worried about the shutdown, which comes at a time when sales continue to recover after the 2008 housing market crash.
"I think people view the government shutdown by and large as a temporary thing, and not something that's going to sustain itself forever. And I, as a result, don't think it's going to effect the industry all that much," she said.
Wednesday testimony alleged a Grand Rapids man admitted to family and friends that he killed his girlfriend Latrice Maze and put her body in a trash bin.
A domestic violence expert looked at dash cam video for 24 Hour News 8 Thursday that showed the Grand Rapids police response to an incident that allegedly happened the same day Latrice Maze disappeared.
A woman accused of perjury in connection to the homicide of Latrice Maze is back in jail.