How to Handle a Loss On Sale
As a result of real estate market declines of the past three years, many transferees now find themselves in a situation in which their home’s selling price is less than what they originally paid for it. This has made loss-on-sale provisions an important policy consideration. While only 40% or so of U.S. companies offer loss-on-sale assistance, most are aware of the issue and considering their options.
If your company needs to deploy critical employees across the United States or around the world, it may be time to implement a loss-on-sale policy or to evaluate the one you have.
Here are a few key questions that need to be answered when developing a loss-on-sale benefit policy, along with a few of our thoughts on the topics. (more…)
Navigating the Short Sale Process With TRC
TRC Global Mobility has worked with many companies and organizations to facilitate short sales. If a short sale is indicated, a transferee whose company is working with TRC should follow this process:
1. Contact the lender. The transferee must identify and reach the person who is responsible for handling short sales and who has the authority to make decisions regarding short sales. The transferee should try to determine whether the deficit will be forgiven by the lender. This part of the process can be time-consuming.
2. Submit a letter of authorization to the lender. To permit the lender to disclose personal information, the transferee must submit a letter with his or her name, the date, the property address, the loan reference number and the real estate agent’s name and contact information. This letter should introduce TRC Global Mobility as the third-party relocation company that will provide the transferee with a guaranteed buyout offer. The letter should give the lender permission to talk with interested parties about the sale of the home. (more…)
Dealing With Short Sales, Part 1: The “Least Bad” Alternative
With the continued decline of real estate market values, many homeowners are finding themselves locked into mortgages with outstanding loan balances greater than the property’s present value. This puts these homeowners in a precarious situation, with several unattractive options:
Using Tax Laws To Reduce Moving Costs
It’s a fact that tax assistance benefits cost an average 55-60 cents for every dollar of taxable relocation expense. In other words, a $10,000 lump sum payment could result in $5,500 to $6,000 of tax assistance costs.
While potentially substantial, these charges can be mitigated: By properly structuring relocation benefits, taking advantage of relocation-friendly tax laws and customizing tax assistance policy to the needs of transferring employees, companies can control and potentially reduce tax assistance costs. (more…)
Relocation Tax Assistance: Part 1
A substantial and often hidden expense
Tax assistance is an expensive and sometimes hidden cost of corporate relocation programs. In fact, it’s the third most expensive benefit in a relocation program, on average, after home sale and household goods.More specifically, the 2008 Worldwide ERC® Transfer Volume and Cost Survey reported that it cost an average $76,600 to move an existing employee, of which more than 10% was spent on employee tax assistance benefits. It can cost more to provide tax assistance than to pay for an employee’s house hunting, temporary living and final trip expenses combined!
Welcome to the TRC Global Mobility blog, which is designed to provide the latest insights on domestic and international corporate and government relocation services. Our goal with this blog is to provide useful information to human resources professionals, relocation managers, realtors, appraisers, and other relocation industry professionals.
Drawing on our more than 20 years of experience providing personalized corporate relocation services backed by advanced technology and thought leadership, we hope to provide fresh perspectives to our readers, as well as imaginative and resourceful advice on different situations. Our topics will include best practices, tax changes, service procurement, employee benefits and services, benchmarking, real estate market information and relevant current events, relocation news and trends.