Relocating for a job or personal reason is not easy. Relocating these days can be even more difficult especially if you have to sell your home first.
According to USA Today, “The leap is especially big for the nearly 25 percent of U.S. mortgage holders who owe more than their homes are worth–or will likely bring at sale.”
However, the housing slump may not have as much of an impact on employee mobility as some may think. The U.S. Census Bureau reported that moves associated with job opportunities remained steady from 2007 to 2009.
With a high unemployment rate, people are opting to take a job even if it means relocating or taking a loss on their home.
The good news is that companies are realizing how difficult it can be to relocate. About a third of 100 companies in various industries throughout the nation changed their relocation programs in 2009 and 2010 to help with the move, according to a survey by Worldwide Employee Relocation Council (ERC), a national trade group.
In the past, it was common for companies to cover real estate commissions and closing costs, but today’s companies might have to fork out more cash for quality employees. Due to today’s market conditions, there are companies that will pay some of the loss of a home sale. According to USA Today, depending on the employee’s job level, that can range from $10,000 to more than $100,000.
However, the “buyout” programs that were more common before the recession are not as popular today. These programs, offered by some companies, helped get the relocating employee’s home sold. Typically, there would be a time period of 60 to 120 days and after that if the home didn’t sell the company would use a private third-party firm to initiate the buyout. Then the employer’s mortgage service would sell the home. This is not common today.
It’s much more common for companies to review each employment situation and then decide. It’s no longer a blanket relocation policy; benefits are decided on a case-by-case basis.
If you’re facing a possible relocation, then knowledge and action are two key ingredients for a stress-free relocation.
Here are a few tips:
Relocating doesn’t have to be stressful. Be sure you understand a company’s relocation offer and then carefully think through the entire process.
Relocating for a job or personal reason is not easy. Relocating these days can be even more difficult especially if you have to sell your home first.
According to USA Today, “The leap is especially big for the nearly 25 percent of U.S. mortgage holders who owe more than their homes are worth–or will likely bring at sale.”
However, the housing slump may not have as much of an impact on employee mobility as some may think. The U.S. Census Bureau reported that moves associated with job opportunities remained steady from 2007 to 2009.
With a high unemployment rate, people are opting to take a job even if it means relocating or taking a loss on their home.
The good news is that companies are realizing how difficult it can be to relocate. About a third of 100 companies in various industries throughout the nation changed their relocation programs in 2009 and 2010 to help with the move, according to a survey by Worldwide Employee Relocation Council (ERC), a national trade group.
In the past, it was common for companies to cover real estate commissions and closing costs, but today’s companies might have to fork out more cash for quality employees. Due to today’s market conditions, there are companies that will pay some of the loss of a home sale. According to USA Today, depending on the employee’s job level, that can range from $10,000 to more than $100,000.
However, the “buyout” programs that were more common before the recession are not as popular today. These programs, offered by some companies, helped get the relocating employee’s home sold. Typically, there would be a time period of 60 to 120 days and after that if the home didn’t sell the company would use a private third-party firm to initiate the buyout. Then the employer’s mortgage service would sell the home. This is not common today.
It’s much more common for companies to review each employment situation and then decide. It’s no longer a blanket relocation policy; benefits are decided on a case-by-case basis.
If you’re facing a possible relocation, then knowledge and action are two key ingredients for a stress-free relocation.
Here are a few tips:
Relocating doesn’t have to be stressful. Be sure you understand a company’s relocation offer and then carefully think through the entire process.
©2018 5-Star Loan
NMLS#1643813
411 E. Huntington Dr. Ste. 209, Arcadia, 91006
This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only. Products not available in all areas. 5-Star Loan is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The federal agency that administers our compliance with these federal laws is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC, 20580.