How the Government Shutdown Hurts NJ Home Buyers and Sellers!

Hi, everyone. This is Scott Selleck with the Selleck Group and Keller Williams City Views Realty. If you're buying or selling a home right now in Bergen or Hudson county or anywhere in northern New Jersey, this video is critical for you. We're now in the third week of the federal government shutdown and the impact really is getting worse by the day. Here in New Jersey, we have over 22,000 employees who are either furloughed or working without pay right now. It's really terrible. Today I want to break this down. Exactly what's happening and how it's affecting homeowners and buyers across northern New Jersey and most importantly, what the solutions are available to keep your real estate plans on track. Let's dive in. The real impact here. Who's really getting affected? The federal workers are in crisis. Over 22,000 New Jersey federal employees are impact. Nationwide, 700,000 are furloughed and 1.5 million are working without pay. That's crazy. The last paychecks they got was October 10th, and many are now starting to miss mortgage payments. These are our neighbors in Fort Lee, Edgewater, Leonia, Tanafly, Englewood face some real financial hardships. And home buyers, they feel like they're stuck in limbo. 17% of Americans delaying mortgage buying a home right now because of the government shutdown and about 7 1/2% have just basically stopped. Here's a concrete problem. USDA loans completely frozen. No new loans are at all out there. FHA and VA loans, major processing delays with skeleton crews trying to get these things through. Flood insurance, the national flood insurance programs have completely lapsed since September 30th. If you're buying near Hudson river, near the Hudson river or the Edgewater waterfront communities, your lender requires flood insurance. Right now. Flood insurance isn't available in these areas. With the shutdown, this is affecting 3,600 homes closing daily nationwide right now and about $1.6 million in transactions every day. Homeowners that are at risk. If your flood insurance policy expires during this shutdown, you could lose coverage entirely. Federal workers facing impossible choices between paying mortgages versus buying groceries right now. It's really not fair. Of all the people, the overall mood. Redfin Chief Economics said it perfectly. People are thinking, we've dealt with the tariffs, job losses, a volatile market, and now we have a government shutdown. Really, what's next? The longer this drags on, the more damage it does to the market confidence, which we really don't need right now at the moment. But here's the good news. There's a real solution available. There are solutions and I'm a solution person. That's how I'm wired. If you're a federal employee struggling with these payments, call your mortgage servicer today. Major banks are treating this like a natural disaster, offering fee waivers and payment extensions or forbearances programs or loan modifications and repayment plan options. The key is reach out to them before you miss your payment. Otherwise you can be disqualified for a lot of these plans. If you can connect with the right contact and navigate through these conversations, I'd be happy to try to help you do that. If you're buying with FHA or VA or USDA loans, switch to a conventional financing if possible. Conventional loans that are backed by Fannie Mae Freddie Mac are operating completely normally with no shutdown delays right now. During this yes, you'll need to pay 3.5 to 5% down instead of like 3 1/2 percent. Maybe for that 1 1/2 percent. Isn't it worth it to get your deal closed and not lose your dream home? Here in New Jersey we have the NJHMFA Down Payment Assistance program. Up to $15,000 are interest free forgivable grants qualified for buyers are available to them. Some buyers can even qualify up to $22,000 down payment. I work with excellent local lenders who can quickly get you pre approved with conventional financing and talk to you about these programs if you need flood insurance. Private flood insurance is fully operational and accepted by the federal backed mortgage programs. The private flood insurance now represents about 27% of all flood premiums these days in the market. I can connect you with insurance professionals who specialize with private flood insurance coverage. Platforms like flood can get you a competitive quote quickly as well. This is why being in the local market matters. I know which Bergen and Hudson county properties on flood zones and you know how to navigate them. If you're selling your home, be flexible with the timing. Build 3060 day buffers and potential delays. Price competitively Price competitively Buyer confidence is shaken right now so pricing matters more than ever. Consider conventional buyers if possible during the shutdown. They may be more reliable right now and the government backed loans while the shutdown is happening because they can't get done with the issues, but some of them can. Why this really matters locally is because Bergen and Hudson county are uniquely affected. Waterfront communities require flood insurance. NFIP lapses hit us hard. The National Flood Insurance Program. Thousands of federal workers live in these communities. We're in a high cost market. It's an expensive area, which means buyers need every financing advantage possible. First time buyers and young professionals, they need the maximum amount of flexibility. Losing FHA and VA access eliminates these opportunities for them. But here's the good news. Mortgage rates have eased. They're into the mid 6.5%. Inventory is up 15, you know, 15 to 20%. And the fundamentals of this market actually are solid. It's a more of a balanced market. So what's your next step? Here's your action plan. If you're federal employees, contact your mortgage service provider immediately. Please do not try to miss a payment. They can help you home buyers explore conventional financing options. Anyone needing flood insurance, there's a private options. Flood insurance options are available to you. Just let me know. Everyone being proactive and working with experienced professionals, that's how we get things done. And this is what I've been doing. The shutdown doesn't have to stop you and your real estate plans if you have the right team and strategies. I've been navigating challenges in this market in Bergen and Hudson county for the past 32 years. If you want expert guidance to keep your transaction on track, call me Scott Selleck with the Selleck Group at 201-970-3960 or email me scottseleck sells nj.com I'm Scott Selleck, the Selleck Group Keller Williams City Views Realty. You're a northern New Jersey Realtor servicing Fort Lee, Leonia, Tanafly, Cliffside Park, Edgewater West New York, North Bergen and all the surrounding communities around those areas. We're going to get through this together. Thank you for watching. Like, subscribe. See you on the next one. And I'm here for you.