Financial News

Although the economy is weaker than it was at the beginning of the recession in December 2007, companies are offering similar or increased severance packages with potential for negotiation. This is great news for recently laid-off workers who may now have the power to negotiate better benefits prior to leaving a company.

Severance Packages and Negotiation Power

Many companies have maintained their commitment to offer fair severance packages, while some have decided to increase benefits. But whats surprising is that even after being offered a severance package, laid-off workers are able to negotiate the following:

More Pay. Many companies offer laid-off workers the equivalent of 1-2 weeks pay for each year worked; however, workers can always ask for more.

Extension of health benefits. When negotiating, workers can ask for health benefits that extend beyond the severance term.

Outplacement services. Some employees request that the company pay for outplacement services, which can help with resume building and interviewing skills.

Exit Statement. By negotiating the exit statement, workers ensure that the layoff shows no fault to them and instead focuses on downsizing or other company loss as a reason for elimination.

Don't Be Afraid to Negotiate Your Severance Package

A common fear associated with negotiating is that it will jeopardize any chance of receiving a severance package. However, companies traditionally do not pull their offers because a worker has attempted to negotiate, which means the worst that will likely happen is that the company will reintroduce its original offer.

In addition to the possibility of increased severance packages and negotiation power, recently laid-off workers can enjoy a new benefit in the stimulus bill that will help pay for Cobra health insurance. While this cant make up for jobs lost, hopefully it can soften the blow a bit and add a little more to your savings account.

Have you been let go, or are in the process of being laid off? How are you handling your severance package negotiations?

Everyone knows that home values are plummeting all over the nation, foreclosure rates have skyrocketed and people are walking away from their homes as a result. People are choosing to hand over the keys on their over-priced homes - especially when they're underwater mortgages - and leaving banks to clean up the mess and take the losses. And it's not just homes in middle-class or lower-middle class neighborhoods, either - decaying foreclosed homes are now a common sight in those expensive exurb developments that sprouted up in just about every state in the nation. But what most people don't realize is that now even the banks are walking away from foreclosed homes, because they've lost so much value that they're simply not interested in repossessing them and trying to resell them at losses. Instead, banks are canceling foreclosed home auctions and handing the keys back to surprised owners.

Bank walkaways are nothing new, but have always been exceedingly rare. Nowadays, however, the bottom just keeps falling out on the housing market in many parts of the nation, especially in older, poorer neighborhoods which saw home values rise somewhat with the speculative bubble, but were the first to plummet when the bubble burst. In fact, the decline in property values in these communities predates the current real estate collapse, and in hindsight might even be seen as early warning signs that the boom times were about to come to a crashing halt.

When a mortgage holder can't make their payments anymore, the banks foreclose on the home, notify the owner that he or she must leave, and then take possession of the foreclosed home in order to sell it and recoup some of their losses on the bad loan. Owners can either leave or refinance their underwater mortgage. That's the way things are normally done, at least. When the bank forecloses on the home and then walks away, the owner is left holding the bag again - and by the time the abandoned property comes back to them it's almost always a wreck. In some cases, the only thing left to do with it is demolish it - and the bill for that will be given to the homeowner too.They are also typically responsible for maintenance fees. To combat banks walking away and leaving homes vandalized and decrepit, cities are suing banks to clean up their properties and are winning. Cities are arguing that if people cannot afford to pay their mortgages, they of course will not be able to pay for the upkeep of the property. When homes are turned over to the banks, it's their responsibility.

Foreclosures are by definition unfortunate events, but they also represent opportunities for people who are looking for great bargains. Is there a high rate of foreclosures in your area, and if so, are people moving quickly to take advantage of them? .

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