4/7/11 When the GOVT DID SHUT DOWN, and STILL IS


    Yes, it is true.  TWO (2) DAYS PRIOR to the FRIDAY night DEADLINE!

    While all the news agencies were reporting the POTENTIAL Gov’t Shutdown,  DOOM & GLOOM , & doing WHAT IF stories all over the country…

    Parts of the gov’t pre-emptively DID START SHUTTING DOWN!

    Americans lives, finances, & jobs were IMPACTED and ARE BEING EFFECTED still!

    Here it is the second business day after the SHUTDOWN that was “Narrowly averted” and THE VERY SAME PART OF OUR GOVT IS STILL SHUTDOWN! (actually day 4 into their shutdown!)

    Still impacting the lives of Virginians and other Americans!

    I am talking about The Secretary of Housing and Urban Development (HUD) the agency that manages (among other things) the large quantity of Gov’t-Foreclosed-Homes & FHA loan program.  

    On Wednesday night 4/6/11, someone in the HUD organization chose to implement “HUD Stop Work Order” effective Thursday 4/7/11 in certain regions of America. This effectively SHUTDOWN OUR GOVT for those people involved/depending on the processes provided by them.

    Apparently, they are treading on new ground and learning (hopefully) as they go.

    I am a Virginian, a Disabled Veteran (24 yrs USNavy) with a Veteran’s Guaranteed Home Loan. Like 40 something other Virginians, I was prepared to close on a home purchase (in the 2 remaining days of the week, before the potential catastrophic Govt shutdown). It was not an FHA loan… it was a V.A. loan to buy a foreclosed home; to buy a defaulted FHA loan… to remove one of the bad debts from the backs of the American Taxpayer. The closing had been rescheduled for Tuesday, but due to scheduling conflicts with the HUD agent ~~~ we had to reschedule for Friday 4/8/11.

    On Thursday 4/7/11, I was notified by my Title/Closing agent, that our closing was canceled due to a STOP WORK ORDER (SWO) from HUD. No one knew what that was. No one could explain. NO ONE AT HUD WOULD EVEN CONFIRM!

    It took 24 hours for me to work back through the chain to find someone that acknowledged the situation and admitted they didn’t know how/when it would be lifted.

    When my title company agent tried to inquire with her conterpart at the HUD closing company, she was told, “They don’t work here anymore.”

    REAL NEWS: Americans/Virginians… Losing Home deals, people losing jobs!


    I contacted, by phone & email, all news agencies, as I thought someone should be reporting REAL EFFECTS as opposed POTENTIAL effects and the fact that the govt was really already shutting done… but no one seems interested!!!

    As of Monday 4/11/11 my contact advised me that the SWO had only been lifted in Maryland.

    Tuesday 4/12/11. Still no word…but if you search “HUD STOP WORK ORDER”

    There is now tons of hits on the impact after only 4-DAYS AFTER THE GOVT DOES SHUTDOWN!

    I have a Guaranteed Loan…& I can’t buy the house we had a deal on!

    OH and my contract on the deal expired Sunday 4/10/11 & the loan expired on Monday 4/11/11.

    Now of course these got extended, but still an irritant/frustration & added work!

    I recieved an CNN story … probably explains something… part of the Deal the polititians worked out to keep from shutting down… cut a billion dollars from the HUD budget!

    For those living in the realm of HUD, and in certain regions…HUD is the GOVT… and it is SHUTDOWN!

    • Shutting down the government, or even threatening to shut down the government, has serious consequences/costs and is wildly irresponsible. It should be off the table.

    • mikelong13

      We are having this exact problem and I have been able to get no answers. Our offer was accepted on february 14. It took almost a month for us to get a ratfied contract. We have been waiting to close on this house for two moths. Our mortgage company is ready as well as ourclosing attorney. The closing date had to be pushed back several times because a company called Laywers Title Advantage cannot seem to get the deed ready. They garunteed everyone that we could close on last friday and then this stop order came into play. I have been on the phone trying to get answers and I get nowhere. I am frustraded and saddened to know that this is happening to more people. There has to be something that we can do.  

    • BlindsidedinCT


      I used to live in Virginia, but now live in CT.

      My closing on Monday, April 11th was similarly canceled, and my real estate agent and attorney have been unable to obtain info for me. I had thought that since the “shutdown” was “averted” that the problem would be remedied quickly, but it is now Wednesday, April 13th, and still no closing date in sight.

      I contacted a local HUD office and was told about the stop work order. The person I contacted informed me that a new “law” would have to be drafted to lift the order and that this would require weeks if not months. He promised to call me back with specifics, but I never heard from him.

      It seems to be a blanket order, as there was no mortgage involved in my case. I was simply purchasing a HUD property with cash. Doesn’t the government need the money? Apparently not. They’re quite capable of generating their own, apparently, with Federal Reserve printing presses.

      The HUDdies have gone into hiding now. When my agent and attorney call, they simply refuse to pick up the phone. Probably afraid of being read the riot act.

      In my case, it has meant canceling a move twice, and canceling contractors I had hired to do some work in the unit I was buying. My daughter, for whom I was buying the unit, is in a state of extreme distress, since all of her belongings are in storage and she must live from day to day not knowing where she’ll be or when she’s going. Rather like being a refugee, but in this case the culprit is an arrogant government office, not Attila the Hun or a tsunami.

      All of this is supremely stupid, inane, deceptive and expensive. It helps to picture the HUDdies and our elected officials in stocks, where all of them belong. Better yet, in makeshift tents.

      Hope it’s over soon.

    • BlindsidedinCT

      Thanks, Sam.

      If I lashed out at the wrong parties responsible for this, I’m sorry. But the whole situation is so clandestine and complex … it was hard to know who the real perps were.

      But now it appears that our elected officials are behind HUD’s secret shutdown. It is a shutdown and it is secret, that much I think we can agree on.

      I’m an independent voter, so I tend not to side with either party. (I voted for O-bomb-a last time, and have lived to regret it, since now we’re entrenched in more futile, exorbitant wars, feeding the machine.) I see examples of stupidity and venal pandering to corporations on both sides. In this case, we the people pay for their reckless fiscal decisions.

      Perhaps the politicians could all benefit from living in FEMA trailers for a week.

      Yes, I know that this is nothing in comparison with what real refugees suffer, and there have been many of them recently. Many, it seems, the victims of undisclosed foreknowledge of the events to come. I really believe that in the case of the BP oil spill. And there are other examples I don’t want to get into.

      Anyway, thanks for the heads up. I guess this means we’re in for a long wait unless, of course, we want to get out of our respective purchases. But then what? In my case, I’m trying to hold on.

      Thanks again for the great info. Share more when you have it and I’ll do the same. There are worse things than a real estate purchase on indefinite hold, but I think deception is one of the worst things, don’t you? And we’ve been deceived.

    • BlindsidedinCT

      Hi, Sam—

      I’m so sorry for the trouble this has caused you, especially in light of your service to this country.

      What you say about lapses in information is true up here in CT, too. The Hartford HUD office knew NOTHING about the stop-work order when my sister called them the other day.

      The Providence HUD office knew very little, but referred me to someone who gave me the info about the “law” that must be drafted to lift the order.

      It seems that certain people within HUD are in an information brown-out. While others simply aren’t talking. Still others appear to be MIA (perhaps laid off or furloughed).

      Meantime, here we are trying to piece together the real story. Hooray for the Internet! Without it, we would know far less.  I’ll update you as I learn more. For now, thanks for sharing what you know.

    • BlindsidedinCT

      Hi, Sam—

      Glad to hear you’re on for next week. It looks as if the same might happen for me. It seems that the order is being lifted.

      What I still don’t understand, however, is the secret nature of this activity. Why the hush-hush? Imagine having all of your bags and boxes packed, your family ready to move across a state line, only to be told that your closing has been called off? With no explanation. And no sense of when a new closing might be arranged. That is the case for many people.

      It just seems that we are being kept in the dark about a lot of things. Suddenly, nothing can be taken for granted.

      Boom. Sorry, ma’am, but you won’t be closing on Monday.

      Boom. Hold it right there, Sir, this TSA agent needs to grope your private parts.

      Boom. We need to grope your six-year-old daughter, too.

      Boom. Oops. And your eight-year-old soon.

      Just a lot of weirdness popping up all over in the U.S. and most people are too busy to pay attention. Unlike you, Sam. Thanks for paying attention to this issue and letting others know about it. I feel, at least, that one other person out there understands.

      As for the other issues, I think we’d all better start paying attention before we lose our country altogether. It’s a sad state of affairs when Constitutional guarantees seem like a nostalgic memory.

      Will keep you updated.


    • BlindsidedinCT

      Thanks again, Sam, for the info.

      You made it easier to get through this. I expect to close very soon.

      Hope it all works out for you, too. You deserve the best outcome.

      Take care, and keep your eyes open.