26 February 2010

The recent economic climate has put a massive strain on housing and has sadly led to some people losing their homes. Without doubt this has to be one of the worst effects of a recession.

There can few things more stressful for a family than losing their home. For most of us we will be lucky enough not to have had to go through this but unfortunately there are those all round the country, including here in Crawley who have not been so lucky.

The Government Mortgage Rescue Scheme was set up as a result of the repossessions issue. Some 127 homes in Crawley have applied for help under this scheme. And a small number of these have been referred to be eligible for the full rescue package.

The Mortgage Rescue Scheme rolled out across the country in January 2009,
aiming to prevent some of the most vulnerable families losing their homes and experiencing the trauma of repossession. Through local authorities the scheme is designed to be a source of help and advice in the first instance, and it is not only just the ones that get direct help that benefit from the support offered.

While having the threat of repossession must be a very stressful time, people should know that help is available

According to the Department for Communitites and local Government
“Lenders have a number of hardship tools to help borrowers avoid repossession. For example, the lender can agree to accept reduced payments in the short term or add the homeowners arrears to the borrowed amount. Money Advisers can and should sit down with homeowners to help prioritise debts, maximise income and where possible, help them avoid repossession”.

I have heard that there have been problems in some places with the way this scheme has been implemented but I really hope it works. I think part of the problem is that in many cases people do not know that this scheme exists so hopefully this article will help bring light to it so that people know that help is available.