Issue link: https://www.e-digitaleditions.com/i/927891
30 Loss on sale Lump sum Mortgage Interest Differential Allowance (MIDA) Program included in some relocation policies which pays the employee some or all of the difference between what the home sells for currently and what the employee paid for it when purchased. Such programs usually have limits and may not include the cost of capital improvements made by the employee while in the home. These programs are more common during cycles of depreciation in certain markets. There may be prerequisites which the employee must meet when purchasing a new home in order to qualify for loss-on-sale in the future, so it is important to ask employees about any such stipulations (such as a pre- Method of reimbursing employees for certain relocation policy items, usually for travel-related items such as temporary living or house-hunting trips. The employee is given a pre-determined "lump sum" amount to cover those relocation items and is not required to document usage or submit an expense report. If he/she uses less than the amount given to him, he pockets it; if he/she uses more, however, he/she absorbs the cost. Employees like the approach because they have more control and can actually make money if they are frugal. Corporations like it because it saves a great deal in administrative time to audit expense reports, consider special requests, etc. From the agent's standpoint, someone who is receiving a lump sum for house hunting may be more motivated to locate a home quickly because the dollars saved for hotel/rental car will be income to him/her. Relocation policy benefit in which the employee is paid a salary supplement to compensate him for the difference between a low mortgage interest rate in his origin location and a much higher rate at his/her destination. This benefit purchase appraisal or extra inspections) when assisting him/her in the home-finding process. came into usage in the early '80s when interest rates were so high. It remains in many policies but is rarely used, although that may change if interest rates rise dramatically.