Did you ever think the value of your home would determine whether or not you would be offered a job?
This is happening more than you may think. You may can outperform someone with your eyes closed, but if he does not have any housing baggage, he may be the one offered the job.
The rampant short sales throughout the nation continue to add extra weight to the drag/lock on career growth and movement. A short sale is when a homeowner attempts to sell a home for less than what he owes the bank(s).
Many companies research whether you can feasibly sell your home before making you a job offer to relocate. Companies have to measure their risk in giving you the job. Risks could include re-training if you end up leaving the job in less than a year or two due to the financial strain of not being able to sell your home. Or the hard to measure resentment and stress that builds up because of the strain the ardurous home sale process places on you and/or your family.
The relocation company, in most cases, cannot interfere in a short sale process between homeowner and bank. Therefore, many relocation packages that include buying the home if it doesn’t sell, is no longer feasible.
Where does this leave you?
This leaves the homeowner in a tough situation to determine the opportunity cost of making the move without a strong relocation package or no relocation package at all. Some choices may include conducting a short sale, paying the difference owed out of pocket, or becoming a landlord and renting your current home for potentially a few years. As ABC News reported last night, renters appear to be creating a wave of new ‘temporary’ homeowners.
The other option, of course, is not to take the job. Is it a valuable career opportunity or a job worth losing?
Did you ever think the value of your home would determine the value trajectory of your career path?
Some homeowners have decided to take a proactive approach and just begin the short sale process now. If a loan modification isn’t coming to fruition and you are not planning to be in your home for the next 10-15 years to take advantage of whatever your town offers, why ride out this depressionary wave and pay a mortgage that’s probably 25%-50% more of the current value of your home? The money going towards mortgage could be used for many other day-to-day basics or maybe even a vacation.
This proactive approach also enables you to let the clock begin in rebuilding your credit and in letting the required time elapse before you can own a home again. For your career, this approach places you in a rental and reinvents you as an employee who can much more easily adapt to new job opportunities.
We have been discussing this a lot with homeowners this year and helping them determine if it’s ideal for their lifestyle to rent, sell, or stay.
Don’t let your home hold you back too much from what you want in life.