Thursday, May 17, 2012

Surprise! (not) -- States divert money intended for citizens

Many states are now taking money from homeowners to cover other budget shortfalls. In a recent settlement with the states, five of the country’s largest banks have agreed to pay a settlement of about $25 billion, which will be distributed among the states and earmarked for foreclosure prevention.
But homeowners shouldn’t expect those earmarks to trickle down to them anytime soon: the New York Times reports that only 27 states are actually putting the funds toward housing programs as intended. The rest are diverting the money toward plugging other budget holes in higher education, prisons, and energy.
I am shocked, shocked.

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