Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds

Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds


Where Are the Foreclosure Deal Millions Going in Your State?


This post has been updated to clarify Virginia’s use of its settlement funds.

States have diverted $974 million from this year’s landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. That’s nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement.

The settlement, between five of the country’s biggest banks and an alliance of almost all states and the federal government, resolved allegations that the banks deceived homeowners and broke laws when pursuing foreclosure. One part of the settlement is the cash coming to states; the deal urged states to use that money on programs related to the crisis, but it didn’t require them to.
ProPublica contacted every state that participated in the agreement (and the District of Columbia) to obtain the most comprehensive breakdown yet of how they’ll be spending the funds. You can see the detailed state-by-state results here, along with an interactive map. Many states told us they’ll be finalizing their plans in the coming weeks. We’ll be updating our breakdown as the results come in.

See Link below in the next post, thx xuenchen!

So, as I understand it, Almost all the states sued the banks for breaking laws when they forclosed on peoples houses. They win and part of the deal is that a ton of cash is distributed between the states that sued and they are urged to spend it on programs that help people within their state that were affected by the crisis.

So the money comes and the states spend 40% of it on reducing their debt!! Instead of creating programs to aid the people on who's behalf they sued for, they use it to pay down debt that was created by poor policies and overspending by the same government in the first place.

Found this too, i think it pretty much sums up what happened here:

The banks were given a "get out of jail free" card, the states got the payoff cash, and the people who lost their homes get ... screwed again

Source

Doesn't seem right, does it?

Thoughts?

reply to post by Nspekta


Here are the links:

Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds


Where Are the Foreclosure Deal Millions Going in Your State?
Notice how many States are still stuck at 0% for "Aid to Homeowners" !!!!!


this is one the biggest scams ever by the "Justice" department.

reply to post by Nspekta
It does not seem right but it does seem typical. Thank you for bringing this to my attention. I will be checking Florida (my state) I do not think highly of our current governor

States have diverted $974 million from this year’s landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. That’s nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement.

And banks are the evil ones?

Sorry nothing beats the corruption of the state and federal governments,nothing.

reply to post by xuenchen
Bam! you went and snuck the link in while I was "composing".
Thanks for making it convienient!

reply to post by xuenchen


Ha, thx! Somehow i totally forgot to add the links

My state: Florida is keeping 10% of 334 million for general fund and asking for input from the public for how to use the rest to help homeowers..NOT BAD!

California is keep ALL 401 million for the general fund....... BAD!

Nevada is giving ALL 100% of money to its homeowers (for got the settlement amount,sorry) GOOD!

Texas is "waiting to decide" (sounds cheesy :dn

That's all I checked

reply to post by Nspekta
I posted a cursory check of 4 states. My state (Florida) didnt waffle as much as I expected



PS and a little off topic...........Been watching old episodes of "Trailer Park Boys" I think this show should be made a Canadian national treasure! If I ever need to move I'm heading to Canada to live in one of your fine trailer park with Ricky, Jullian and Bubbles

reply to post by grubblesnert


Lol trailer park is awesome! Leighey and randy travel around the country on tours going to bars and they stay in character.. Its wicked! Glad to hear you love it!

Sounds just like when the states sued big tobacco. How much of that went to fund anti-tobacco programs and the like
Just another scam for the states to steal money. Kudos to the states listed in the above post for doing what is needed with the money.

reply to post by Nspekta


Well it does seem reasonable for a State to pay down its debt. However, guess where this money goes? Right back to the bank to shore up any losses and stabilizes their loan portfolio. You are right, what relief does the actual person harmed get? What program is put into place to help troubled home buyers out?