SIRVA Relocation files Chapter 11

Moving company Allied Van Lines Inc., along with its corporate parent Sirva Inc., filed for bankruptcy protection Tuesday, the latest victim of a heavy debt load and the downturn in the U.S. housing industry.

The company, which is based in Westmont, Ill., (which is really near Naperville), although they used to tell their relo clients that they were in Oak Brook as it has more cache.

I expect that several other relocation companies are feeling the same pangs. They've spent too much money buying the relo clients' homes, which they now can't sell.

As I've mentioned before, so many of my clients are relo buyers unable to sell their homes, that their move to the Naperville area may be delayed or just forgotten.

And even with the lower mortgage rates many buyers can't pass the underwriter's tests. I read that 30% of all closings that make it to the closing table, don't close. Now that's scary!