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Making It in San Diego: Unpaid government workers owe millions in mortgage debt

Posted at 6:49 PM, Jan 09, 2019
and last updated 2019-01-09 21:49:14-05

SAN DIEGO (KGTV) -- As the government shutdown continues, a new report takes a look at its impact on federal workers’ housing expenses.

Federal employees who aren’t being paid during the shutdown make about $249 million in monthly mortgage payments, according to Zillow.

Similarly, Zillow estimates that workers who rent pay about $189 million for housing each month.

Roughly 800,000 workers aren’t being paid, but still have to figure out a way to pay for housing.

The U.S. Department of Housing and Urban Development says it doesn’t expect a significant impact as long as the shutdown remains brief.

“With each day the shutdown continues, we can expect an increase in the impacts on potential homeowners, home sellers and the entire housing market,” the agency added.

Friday, the agency sent letters to 1,500 landlords in an effort to prevent evictions due to lapses in funding, according to the Washington Post.

Zillow also reports that the shutdown could lead to administrative delays with loans backed by Fannie Mae and Freddie Mac, agencies that insure a majority of mortgages.

Possible delays include lenders unable to get verification of employment for borrowers who work for the federal government and possible IRS delays verifying the income of borrowers.