Author: Rubinowitz, Leonard S
Summary
This is the fifth of a series of papers analyzing publicly initiated reinvestment strategies. A family’s home usually represents its single largest investment. For this reason, people buy insurance whenever possible to protect them against perils — fire, flood, vandalism, etc. — that may threaten the value of their home. In recent years, businesses and sane government agencies have recognized that in addition to physical hazards there are economic perils which may affect the resale value of a home. For this reason, many businesses have programs to assist employees who are being transferred in selling their homes. In some cases, an employee’s company will even buy the home at its fair market price, and then resell it in a timely fashion after the employee has departed for a new assignment. The employee is then able to purchase a nav dwelling with the equity from his old residence while the company waits for a reasonable offer on the old home. The Department of Defense has a program to guarantee. up to 95 percent of an employee’s equity in the event of military base closings. Both of these programs remove some of the anxiety that homeowners have about the potentially negative consequences of economic perils.
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