The National Mortgage Settlement awards money to the States that is intended to be used to help struggling families stay in their homes. Some states are using this money for other purposes.
This Article from the Huffington Post discusses Ohio’s decision to use $72 million of its $335 million to demolish abandoned homes in the greater Cleveland area.
Cleveland and the surrounding unincorporated area has 23,000 abandoned homes. Many of these homes are bank owned. When the bank took over ownership of the homes they made no effort to maintain the properties, which became health and safety risks.
Cleveland and other cities have taken the banks to court to force them to maintain the properties but have so far been unsuccessful in getting a court to require the banks to maintain these properties.
See the full article from the Huffington Post Business below.
Other states’ use of settlement funds not directly related to foreclosure crisis:
Missouri Gov. Jay Nixon laid claim to a chunk of the money to avert a huge budget cut for public colleges and universities.
In Pennsylvania, where a fourth straight budget deficit is projected, Democrats are pressing the Republican-run attorney general’s office to use some of its $69 million payment to offset $2 billion in cuts to programs that benefit education, the elderly, disabled or poor.
Vermont plans to use $2.4 million from the settlement to help balance its budget.
Maryland Attorney General Doug Gansler said about 10 percent of his state’s $62.5 million payment will be made available for the governor and lawmakers to spend as they choose.
See full article here: