Economic Struggle: Underwater Mortgages Hindering Job Search

Many American homeowners are finding it increasingly difficult to apply for jobs because of their housing situation. Homeowners who are strapped to the mortgage of an underwater home seem to be having difficulty leaving it. This means that job relocation rates are suffering.  The number of people who are willing to relocation during this recession is at 13.2%, but the average relocation rate since 2009 has been around 7.9%.

Despite needing jobs in this rough economy, many are forced to stay where they are and pass up far-away employment opportunities because of their mortgages and financial burdens. This in turn effects employer's long-range growth. Once they run out of local options, they will need to rely on those willing to relocate  in order to prevent their company's expansion plans from stalling, which would ultimately effect the economic growth of the country. Unfortunately at this point, most employers will not cover an employee's relocation costs and even fewer will help lessen the impact of selling an undervalue home. All of these factors add up to very little incentive for a job seeker to take a chance on moving to a new location.

It seems as though moving really is a last resort for the majority of job seekers. There are not many who are willing to take such a big loss on the sale of their home for a job position that may not last long or pay off well. Overall, people are a bit stuck. This could be one of the biggest obstacles for Americans in this economic recovery.

Hopefully the American people will take advantage of all the mortgage help that is being offered lately such as the impending bank deal that will help those facing foreclosure to restructure their loans. There's also HARP's new guidelines that are allowing homeowners to refinance at today's lower mortgage rates. And if absolutely necessary, Freddie Mac will be allowing unemployed borrowers an additional 6 months of forbearance on their mortgages.

So if you are one of the homeowners who feel stuck because of a lack of job opportunities and the impossibility of leaving your home, hold tight. The help is coming. Recovery is on the horizon. Here's to hoping that it truly will help Americans to climb back out of the holes caused by unemployment rates and underwater mortgages.

Posted in: economic recovery,homeowners,job opportunities,relocation,relocation rates,underwater mortgages,unemployment