Over this past year, the British government announced a scheme to simply help families facing foreclosure reduce payments because of lack of income. The scheme went into effect, helped hardly any families, and cost taxpayers an incredible number of pounds.

Homeowner Mortgage Support Scheme

The Homeowner Mortgage Support Scheme, or HMS, was announced over this past year with much fanfare from the government. HMS was supposed to simply help struggling borrowers stay PM Modi Yojana in their homes while the economy and unemployment rates were at the worst levels in years. The scheme allows homeowners to reduce their mortgage payments for 2 years due to lack of income. The scheme has only managed to simply help 15 families but has still cost 2.5 million pounds. With the typical home cost being $165,000, the us government would have saved money just by purchasing the homes outright for the families.

Where would be the Struggling Families?

HMS is just one government program meant to simply help struggling homeowners. Other programs have helped families get equity loans to reduce their mortgages or to offer their homes and remain in them as tenants. Although 1 in 1000 households is in danger of repossession, hardly any have needed the kind of help offered by HMS because other programmes are better suited to their needs. HMS is never as helpful as expected.

Where Did All of the Money Go?

Even though the government has spent 2.5 million pounds to simply help only 15 families, they still defend the program. A lot of the amount of money spent was said to have visited one-time set-up costs and won’t have to be spent again this year. Money was also used on broader policies and development. Currently, there are still 1000s of homeowners in danger of repossession that can take advantage of HMS and the us government believes that the safety net will undoubtedly be needed by more families next year.

Is the Scheme Working?

Even though a number of the money spent on HMS was one-time costs of development and policy work, this program may not necessarily be effective. At the current per-family rate, HMS has spent more money helping 15 families reduce mortgage payments for only 2 years then the 15 homes cost. Probably the development of the master plan was faulted from the beginning, with initial costs being too high. Continuing this program seems like it will happen and the us government says more families will utilize the safety net in 2010. It is left to be viewed if the per family cost will undoubtedly be reduced to a reasonable level that really makes sense. It can be a wonder when other programmes are employed more frequently, why this programme is continuing as there are no doubt ongoing costs connected with the scheme.