Managing relocation in the current business environment has become increasingly challenging because of declining real estate markets in many areas of the United States. One out of four homeowners is upside down on their mortgages, meaning that they owe more on their mortgage than the home is worth. As a result of high unemployment, about 300,000 homes a month are going into foreclosure in the US. There may be as many as 5 million homes in foreclosure with more on the way. Very often when transferees attempt to purchase a home, they are encountering Short Sales; a seller working with the bank to sell the home for less that the mortgage amount to avoid foreclosure. Purchasing a home through a Short Sale is problematic at best because it can take several months before the transferee learns if he or she is the winning bidder. While in general it might be best to avoid Short Sales altogether, it is very tough to do in states like California, Nevada, Arizona and Florida where perhaps 50% of homes on the market are Short Sales.

This is the "New Normal" we are likely to face for the next several years in the US until unemployment comes down and all these distressed Short Sale homes are absorbed by buyers. As a result, we are working with clients to pressure test their relocation programs to determine if their US Domestic relocation plans, that may have worked fine in the "Old Normal", when houses were selling in 30, 60 or 90 days, are workable today in the New Normal. In many cases, policy revisions are required to reflect the market conditions that we all face. In many areas in the US, it is taking much longer to sell homes. Typical Buyer Value Option Programs, that had no potential for Guaranteed Buy-Out at some point really need to be changed to include a Sunset Clause that provides for a Guaranteed Buy-Out offer from Paragon after a prolonged marketing period. This is also needed to survive an IRS audit should one ever occur because of these extended Marketing times. It may be that at 120 or 180 days on the market, if the home has not sold, a Sunset Clause should kick in where in which a Guaranteed Buy-Out offer is made by Paragon. Once done, there can be an additional 30 or 60 days of Marketing time in an attempt to meet, or beat the offer; but ultimately if a buyer is not found in 6 - 9 months, the transferee should be relieved of the burden of the home. In the long run, this will be more cost effective for the client. Extended Marketing times typically result in extended Temporary Living that may cost several thousand dollars a month and require equivalent tax gross up, while third party homesale benefits, properly administered, can be provided tax free.

Paragon Announces Partnership with Lloyds International 

Through an exclusive partnership with Lloyds International, Paragon Relocation offers expanded banking benefits to assignees wherever they are in the world. With a Premier International Account, assignees have access to their money worldwide, in their choice of Sterling, Euro and US Dollar currencies.

With the international debit card*, assignees save money by not incurring any overseas transaction charges and through the bank's preferential exchange rates. The account is fee-free with a minimum balance and comes with worldwide family travel insurance included.

For assignees coming into the United States, there is no US credit history required. Lloyds Banking Group also offers a range of instant access and long-term investment products that allow assignees to continue saving and avoid the effect of currency fluctuations, with savings in all major currencies.

Assignees typically find it very hard to set up local banking accounts in their host country due to not having a local credit history. These products can provide them with the service they need and can be easily set up before they leave. Benefits include:

• Reliable, convenient access to funds
• 24-hour access to accounts while overseas
• Worldwide assistance opening accounts
• Upscale banking service, including access to personal bankers
• Reduced fees and preferential foreign exchange rates

Paragon Relocation - Holland, The Dutch Tradition of Skating

"Giet it oan?" - Frisian for "Is it on?"

Skating fever has started. After a week of biting winds and freezing temperatures, the ice is forming along the canals and waterways in Friesland in the North of the Netherlands. Once the ice is deemed thick enough, young and old wrap up in fur hats and gloves and take to their skates. Skating is a Dutch tradition, sport and frenzy. Many expats may wonder if there is a particular Dutch gene associated with this craze.

The 11 cities tour or "Elfstedentocht" is the most famous. First held in 1909, it's a marathon race of 200 km (124.27 miles) with 15,000 amateur skaters taking part. The race is not held every year as the ice has to be at least 15 cms (5.91 inches) thick over the entire course for the organizers to give the green light. The excitement builds each year as the anticipation grows. Will it happen this year? Giet it oan?

The coldest race was in 1963, when only 69 of the 10,000 skaters made it to the finish line. A film released in 2009 "The Hell of 63" tells the gruelling tales of the riders and the fierce determination some showed in completing the race. Amazingly no one died that day, but there were many broken bones and frozen limbs. View a trailer at Bridge Entertainment Group or search Youtube for a taste of the Dutch steely grit!

For those looking for a more sedate afternoon, just take a chair out on to the ice.

Paragon Relocation Annual Conference

Paragon Relocation hosted its third Annual Conference during October in Dublin, Ireland. The meeting was directed by Liam Brennan, Managing Director of Paragon Relocation. In attendance were representatives from Paragon Relocation's Operations in Hong Kong, South Korea, The Netherlands, Spain and the USA.

Conference sessions addressed current trends and challenges within the global mobility industry and also provided opportunities for networking and sharing best practices with colleagues. The agenda included presentations on key growth initiatives, cost control approaches and best practices adopted by companies in light of today's economy.

"The Paragon Relocation Annual Conference provides an opportunity to discuss current and significant issues with peers and take away solutions that will enhance our organization's ability to perform in an increasingly competitive environment," said Joe Morabito, CEO of Paragon Relocation. "As the economy enters a new phase, there are many new opportunities to seize and in this a New Normal environment, Paragon Relocation has the necessary expertise and capacity to adapt and thrive."

"This is an exciting time for Paragon Relocation," states Liam Brennan. "In the coming months, we will focus on new growth projects and expanding the Paragon Relocation brand into key markets."

Worldwide ERC®, Global Workforce Symposium   

Paragon Relocation was a sponsor and exhibitor at the Global Workforce Symposium on October 25-29 in Seattle, WA. The week kicked off with training for the Global Mobility Specialist (GMS) certification. Paragon Relocation had

From left to right: Liam Brennan, Stuart McAlister, Jennifer Morabito, June Ranson, and Brian Morabito

two employees attend the training. At the conclusion of the training sessions, Terri Hamilton and Mike Morabito earned their GMS certification.

To wrap-up the week, Paragon Relocation also hosted their partner Destination Service Providers (DSP) attending ERC at an intimate dinner overlooking Lake Washington to honor them for their excellent service on behalf of Paragon Relocation around the world.

CIPD Conference & Event  

Paragon Relocation recently attended the CIPD Annual Conference and Exhibition at Manchester Central, on November 9-11. As the professional body for those involved in the management and development of people in the UK, over 3,000 CIPD members attended the three-day conference.

This year, the event explored a number of key areas in HR competencies, based on the theme of "Forward Planning, Forward Thinking, Forward Moving", as the global economy enters a new phase of development.

Each year, the conference presents a great opportunity for HR professionals to see all of the major suppliers in one location and the CIPD has proven to be a busy and successful event for Paragon. Our third time to exhibit at the event, Paragon showcased our cost saving initiative, Partner Select.

Barrie Gilmour, Director, Global Business Development was on hand for the duration of the conference to offer tailored advice to HR delegates on relocation best practices.