Recently, more and more Georgia homeowners are having trouble paying their mortgages. In fact, Georgia is in the top five states for foreclosures this year. And that’s driving down home prices, as foreclosed properties flood the Georgia market, especially in the Atlanta metro area.
Some homeowners are caught in the so-called “subprime meltdown,” finding their previously low interest rates resetting at higher levels and bumping up their monthly payments. Others are having trouble buying a home because lenders are significantly tightening their lending standards.
Here’s why that’s important for employers: Employees under financial stress use more sick leave, make more mistakes and are more likely to experience depression and anxiety. Plus, employers may have trouble attracting new employees who can’t sell their homes to relocate due to falling prices. Some might not be able to get a mortgage if they do relocate.
What can employers do? It may be time to brush off employer-relocation programs like those that were used in the 1980s when interest rates soared. Consider relocation packages that include buying properties and helping with financing. Plus, make sure your employee-assistance program is prepared to handle calls from distressed employees.