Government shutdown said to hurt real estate industry - WRCBtv.com | Chattanooga News, Weather & Sports

Government shutdown said to hurt real estate industry

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CHATTANOOGA, TN (WRCB) -

The government failed to come to an agreement Monday night, forcing a partial shutdown which could hurt the real estate industry.

It's looming on the minds of realtors, as they prepare for what could happen.

"If it goes on for any period of time, it could be really devastating to the real estate industry," said Ryan King, realtor.

King says a shut down will affect both buyers and sellers.

"The sellers won't be able to sell their homes and the buyers won't be able to buy homes," said King.

He says that's because it's going to pump the brakes on several of the working parts, like preventing any mortgages from being approved.

"So many of the loans FHA, VA, USDA, THDA, they're all government backed loans and getting those processed is what's really going to be the slowdown," said K

The other big concern; The IRS won't be open to verify the income of those applying.

"And if there is no IRS open then they can't verify your income and determine if you're even eligible to purchase a home," said King.

As a realtor, King says there is more at stake for him.

"It worries my wallet for sure," said King. "It's a commission based job so if you're not closing on houses, then you're not making any money."

He hopes it comes to a quick close.

"If it just happens for a few days it will be like a hiccup, but if it continues on for an extended period of time, they're going to have a huge back log for processing," said King.

This would leave a lot of home buyers and sellers in limbo.

"You have people that are already under contract with these loans, that have pending sales going on, those are going to be the people affected right now," said King.

Home buyers and sellers won't be the only ones affected.

Channel 3 spoke to the owner of Shooters Depot Monday.

He said the shutdown would mean you could buy a gun, but could not get a gun carry permit.
 
This is because to buy a gun, the required background check is through the state, but to carry it, through the federal government.
   
He also mentioned no one will be able to buy class three weapons because the process of paperwork would be at a standstill.

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