Over a year ago, the British government announced a scheme to help families facing foreclosure reduce payments due to loss of income. The scheme is now into effect, helped very few families, and cost taxpayers millions of pounds.

Homeowner Mortgage Support Scheme

The Homeowner Mortgage Support Scheme, or HMS, was announced over a year ago with much fanfare from the government. HMS was supposed to help struggling borrowers stay in their homes while the economy and being out of work rates were at the worst levels in years. The scheme allows homeowners to reduce their mortgage repayments for about a couple of years because of loss of income. The scheme has only were able to help 15 families but has still cost 2. 5 million pounds. With the average home cost being $165, 000, the costa rica government could have saved money by just buying the homes straight up for the families.

Where are the Struggling Families?

HMS is just one government program meant to help struggling homeowners. Other programs have helped families get fairness loans to reduce their mortgages in order to sell their homes and remain in them as tenants. Even though 1 in 1000 households is in danger of repossession, very few have needed the type of help offered by HMS because other programmes are better fitted to their needs. HMS is not as helpful needlessly to say. Sarkari Yojana

Where Did All the Money Go?

Even though the costa rica government has spent 2. 5 million pounds to help only 15 families, they still defend the program. A lot of the money spent was asked have been paid to one-time set-up costs and will never have to be spent again this year. Money was also spent on bigger policies and development. Currently, it is possible to thousands of homeowners in danger of repossession that can benefit from HMS and the government believes that the safety net will be needed by more families next year.

Is the Scheme Working?

Even if some of the money spent on HMS was one-time costs of development and policy work, the program may not necessarily perform the job. At the current per-family rate, HMS has spent more money helping 15 families reduce mortgage repayments for only a couple of years then the 15 homes cost. Maybe the development of the plan was faulted before it starts, with initial costs being way too high. Continuing the program seems like it will happen and the government says more families uses the safety net this season. It is left to be seen if the per family cost will be reduced to a reasonable level that basically makes sense. It is also a wonder that if other programmes are used more often, why this programme is continuing as there are no doubt ongoing costs associated with the scheme.

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