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Location: Scotts Valley, CA, United States

Saturday, December 08, 2007

Mortgage Foreclosure Threats give Employees Reason to use Their Group Legal Services Plan

Employees are Worried About Losing their Homes while
Employers are Concerned About Lost Productivity!

According to the local newspaper, foreclosures in Los Angeles County are up 800% from this time last year and according to RealtyTrac, there was one new foreclosure for every 1,117 U.S. households in January 2006 compared to the same period a year earlier. Many economists and industry observers expect the pace of foreclosures to accelerate this year.

With foreclosures at their all time high, more and more mortgage holders are faced with higher interest rates and often the short-term fixed rate comes to an end with adjustable rates effectively doubling the payment. With huge payment increases without the increased income to support them, the employee runs into a very stressful situation.

When employees are stressed, their work suffers. When they are in a quandary, with unanswered questions and an insecure situation, they often turn to their fellow employees for guidance. Not only does their productivity suffer, but so does the work flow of their team.

Employers are beginning to promote legal services at an increased rate in an attempt to settle employees' concerns over housing issues. It is estimated that the number of mortgage-related calls received by group pre-paid legal provider law firms has nearly doubled in the past year.

Documentation review and preparation for mortgage-related services is up significantly in the first nine months of 2007 compared to the same period in 2006. This tells us that, more than ever, people are very keen on getting their mortgage papers reviewed before they find themselves in hot water.

Hiring an attorney is not cheap, which is why the presence of a group pre-paid legal plan and financial consultation services is so important right now to those affected by the housing crisis. Most, when faced with a legal situation, either ignore the situation or try to handle it themselves. Both avenues are dangerous policies.

"Someone who has debt problems usually cannot afford an attorney, and yet they're the ones who really need one," says Smith. "A group prepaid legal plan makes it possible."

Read more here.