Government shutdown impacting the Tri-state real estate market - WSFA.com Montgomery Alabama news.

Shutdown impacts Tri-state homebuyers

(FOX19) -

The government shutdown is impacting the Tri-state real estate market by causing hold-ups for some prospective homeowners.

More than red tape, some buyers have run into closed doors and unattended phone lines.

"I didn't know what I was going to do. It was very, very frustrating," Liana Hardig told FOX19.

Hardig was in the final steps of getting her loan backed by the U.S. Department of Agriculture to buy a house in Butler County through a rural development program, but then came news of the shutdown.

"There was no one to answer any questions, they weren't taking any calls, there were no answers," she said. "So I felt like I was in the dark."

Hardig and her realtor thought they would wait it out in the beginning, but as the stalemate in D.C. dragged on they were forced to take a different route to finance her home.

"I just didn't think it would personally impact me like it did," she admitted.

Tom Hasselbeck with the Cincinnati Area Board of Realtors says the IRS has been another source of pain for some prospective home buyers as lenders wait on tax documents.

"They're saying they're available online but if you have any instances where you need to speak to a professional there is no one there to answer the phone," Hasselbeck explained.

With the market starting to turn around, Hasselbeck says the last thing communities need is more hurdles for potential homeowners to have to jump through.

"One hiccup in the process that could delay that," he said.  "[It could] change the interest rates, change the closing, change the move date. All those things become a factor."

For Hardig the frustration was enough to write Speaker John Boehner.

"They forget about all the people that it impacts personally," she said.

"As a negotiator who deals with real estate on a daily basis we would hope that our government could negotiate better," Hasselbeck said. 

Copyright 2013 WXIX. All rights reserved.

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