This is good if for no other reason than the last line if funny.
Today, President Obama will make a last-ditch effort to avoid sequestration, meeting with Congressional leaders in hopes of hammering out an 11th-hour deal (as if there were any other kind with this Congress). If no agreement is reached, the President will be required by law to issue the order to cut spending by $85 billion staring at midnight on Friday, with nearly half of the cuts hitting defense. Which means come Saturday, there will be nothing to prevent the King of England from waltzing right into your front door and pushing you around.
What does it mean though for Real Estate, provided that 11th-hour deal doesn’t happen? Well, Diana Olick, CNBC’s Real Estate Reporter, gives a number of possibilities.
Olick cites FHA as a prime candidate for causing harm to the housing industry, as FHA staff will be cut right when it is in the process of helping the US get out from under the severe housing slump. She also mentions the housing construction industry that would lose work around Washington D.C. because so many governmental workers would be laid off.
US Secretary of Housing and Urban Development Shaun Donovan said, “Distressed households who receive counseling [from HUD] are more likely to avoid foreclosure, while families who receive counseling before they purchase a home are less likely to become delinquent on their mortgages.”