Issue link: https://www.e-digitaleditions.com/i/927891
31 Mortgage subsidy Negative Amended Value Net sales price Option period Outsourcing Pre-marketing Purchase closing costs An alternative cost-of-living benefit in which the corporation "buys down" the employee's interest rate at the destination, usually for a period of 3 to 5 years, so that the employee can qualify at a lower rate and thus afford more house. The 3-2-1 or 5-4-3-2-1 subsidy is most common. Since the company contribution goes directly to the mortgage, it also has interest deduction benefits for the employee and is not considered taxable income which must be grossed up. If an employee has such an option under his policy, it may increase his/her purchasing ability. Situation in which corporation directs a third- party company to accept an offer received by the transferee during pre-marketing which is lower than the appraised value to avoid taking home into inventory. The employee is paid the appraised value, but the amended value closing results in a small loss to the company, but probably less than the cost to take the home into inventory. Gross-sale price less concessions to buyer. The time in which the employee has to sell the home himself/herself prior to accepting the company/third-party buy-out offer. Also called "offer period" or "acceptance period". Technically, outsourcing is any "subcontracting" of an internal-corporate function to an outside company specializing in that function. Thus, all usage of third-party companies is technically "outsourcing". Today, though, the term is used more typically to refer to the practice of having the outside relocation company handle all relocation functions, not just the buy-out. This would include counseling the transferee, developing policy, reviewing and approving relocation expense reports, etc., and it is sometimes done in the See Home Marketing Assistance. Most corporations reimburse some or all of the buyer's closing costs when purchasing a new home at the destination. Policies vary on which items are covered, but they usually cover "customary closing costs" (appraisals, credit application, title insurance, lender attorney's fees, etc.) as well as some allowance for loan-origination fees and/or discount points. They do not include pre-paids or escrowed amounts for taxes and insurance. corporation's offices by the outside company as an "onsite" outsource program.