Home Payments Mid-Closure Total $ 430 Million for Federal Workers

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The government's closure is now in its 21st day and federal employees are beginning to feel the financial impact. In total, 800,000 workers are either on leave or without pay, while President Trump and the Democrats continue a heated conflict over the financing of a border wall. "data-reactid =" 15 "> The government's closure is now at its 21st day and federal employees are starting to feel the financial ramifications.A total of 800,000 workers are either on leave or without pay, while the president Trump and Democrats continue conflict over the financing of a border wall.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In total, these federal employees owe about $ 438 million in rent and mortgage payments, according to a recent report from HotPads, a real estate company owned by Zillow. In total, these federal employees owe about $ 438 million in rent and mortgage payments, according to a recent report from HotPads, a real estate company owned by Zillow.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""This is not just because paychecks are temporarily waiting for bills to not accrue at the same time," Yahoo Finance told Alexander Casey, the team's political advisor. Zillow Economic Research Institute."data-reactid =" 17 ">" It's not because paychecks are temporarily waiting for bills to multiply at the same time, "Yahoo Casey, political advisor to the team, told Yahoo Finance. Zillow's economic research.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Homeowners housing federal workers owe about $ 249 million in mortgage payments, while tenants should have up to $ 189 million a month."Data-reactid =" 18 "> Homeowners among federal employees owe about $ 249 million in mortgage payments, while tenants could have up to $ 189 million a month.

Donna Kelly is a federal contract worker who is a security officer at the Smithsonian. (Photo: Marvin Joseph / The Washington Post via Getty Images)

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""About 50% of renters can not afford a shock of $ 1,000""data-reactid =" 39 ">"About 50% of renters can not afford a shock of $ 1,000"

HotPads calculated the data by identifying government employees affected by the closure and determined their median income. From there, economists deducted their daily wages, $ 135 a day. Since the closure began on December 22, every federal worker has lost more than $ 2,800 on average. HotPads economists used the median income to determine whether or not these employees could pay their loan or rent.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""About 50 percent of tenants can not afford a shock of $ 1,000 (an unexpected payment)," said Joshua Clark, HotPads' economist, at Yahoo Finance. "In places like D.C. where the median rent is $ 2,000, many people will not be able to cover it.""Data-reactid =" 41 ">" About 50% of tenants can not afford a shock of $ 1,000 (an unexpected payment), "Yahoo Finance analyst Joshua Clark told HotPads. $ 2,000, many people will not be able to cover it.

The nation's capital has the largest number of federal workers and is among the first places in the United States that have been hardest hit by the government's closure.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""If you are a federal employee, you may have to give up your car payment or other payment," Clark said. "It's about discovering [what places] are the most flexible. ""data-reactid =" 43 ">" If you are a federal government employee, you may have to give up your car payment or other payment, "said Clark. [what places] are the most flexible. "

(Graphic: David Foster / Yahoo Finance)

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Home payments at the time of the stop cause "incredible stress""data-reactid =" 64 ">Home payments at the time of the stop cause "incredible stress"

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Without receiving a regular pay check, employees may have a hard time making these payments on time. "data-reactid =" 65 "> Without receiving a regular pay check, employees could have a hard time making these payments on time.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Housing affordability is a huge problem in this country," Clark said. "It is quite realistic that this causes problems for families.""data-reactid =" 66 ">" The affordability of housing is a huge problem in this country, "Clark said. It is quite realistic that this causes problems for the families ".

Dan Healey, a Texas owner, recently told Yahoo Finance that he may be forced to evict his tenants, who are both federal government employees, who can not pay their February rent. . Healey needs the rent to pay the mortgage of the house.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The United States Office of Personnel Management (OPM) has a section on its website dedicated to resources for employees affected by a government shutdown. This includes an example letter to creditors and mortgage companies stating that the employee may not be able to make payments on time due to the closure and instead offer a payment plan."data-reactid =" 68 "> The US Office of Personnel Management (OPM) has a section dedicated to resources for employees affected by government closures on its website, including an example of a letter to be submitted to creditors and mortgage companies, stating that the employee may not be able to make payments on time due to the closure and instead offer a payment plan.

The passage of OPM initially indicated, in the examples of letters addressed to the owners: "I would like to discuss with you the possibility of exchanging my services to carry out maintenance work (for example painting or carpentry) in exchange for partial rent payments ". before December 29, after provoking aftershocks.

The story continues

(Photo: screen capture / US Office of Personnel Management)

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Federal government agencies process about 3,900 mortgages each business day, according to Zillow. According to their data, more than 50,000 mortgage creditors could have been affected by the closure of these agencies.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Although many mortgages are handled automatically, the question is how many should be viewed by one person?" Clark said. "The stop caused incredible stress, especially when the HUD was hit.""data-reactid =" 95 ">" Although many mortgages are handled automatically, the question is how many should be viewed by one person? said Clark. The closure causes incredible stress, especially when the HUD is hit. . "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Casey said that it would be a personal situation for each owner. "data-reactid =" 96 "> Casey said that it would be a personal situation for each owner.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""There will be a wide variety of ways in which homeowners can collect their payments, or how their creditors or their banks will be willing to work with them in the meantime," Casey said."data-reactid =" 97 ">" There will be a wide variety of ways that homeowners can bundle payments, or how their creditors or their banks will be willing to work with them in the meantime, "Casey said. .

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Housing costs are not going anywhere""data-reactid =" 98 ">"Housing costs are not going anywhere"

Edward Hill, a federal employee, speaks with US Senator Chris Van Hollen (MD) after attending a roundtable discussion on the partial closure of the US federal government on January 7, 2019. (Photo: REUTERS / Jonathan Ernst)

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""In some cases, tenants may be lucky in negotiating with their landlords to help them find a temporary solution," Casey said. "But at the end of the day, even if this money comes later, even though people have another income they can count on in the meantime, it's going to be a headache for people who get screwed up a lot. Housing costs are not going anywhere, even though wages could be on hold. ""data-reactid =" 119 ">" In some cases, tenants might be lucky to negotiate with their homeowners to help them find an interim solution, "Casey said. But in the end, even if this money comes later Even if people have another income they can count on in the meantime, it's going to be a headache for those in a difficult situation. Housing costs are not going anywhere, even though wages are on hold. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A federal employee told CNBC he can not pay his rent and a real estate agent said his client could not check his income for his mortgage lender. A contract employee in Kansas City, Missouri, even used crowdfunding via GoFundMe. "data-reactid =" 120 "> A federal employee told CNBC that he" might be forced to become homeless for a while "because he could not pay his rent, and a real estate agent stated that his client could not verify his income, and a mortgage lender in Kansas City, Missouri, even used crowdfunding with GoFundMe.

Although it is "a bit early to say it now," Casey said, there could be "wider macro impacts" on the housing market.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Whenever consumers are a little hesitant A little uncertain and a little uncertain as to their finances or the market, you will see people slow down, at least in the short term, "he said. "If the closure continues, there could be a significant impact on housing simply because people are cold feet or consumer confidence generally drops.""data-reactid =" 122 ">" Whenever you have a little hesitant, a little uncertain and a little uncertain about the situation of their finances or the market, you will see people pumping the brakes, at least to In the short term, "he said," If the closure continues, it could have a significant impact on housing simply because people are cold-feet or consumer confidence suffers. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Adriana is Associate Editor for Yahoo Finance. Follow her on Twitter @adrianambells."data-reactid =" 123 "> Adriana is an associate editor for Yahoo Finance Follow her on Twitter @adrianambells.

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