News Monday: California is using Robo-signing settlement to help state, not homeowners
California’s decision to use $411 million in settlement money from robo-signing settlements to pay off the state’s general fund deficits has homeowner and real estate advocate groups crying foul.
States were urged to use the money to help homeowners save their homes from foreclosure, but California opted to apply the entire windfall to the state itself. And California isn’t alone in this. Texas is also planning to divert 100% of its $134,600,000 piece of the settlement to the state’s general fund, with zero going to foreclosure support programs.
Overall, sources report that over 40% of the money distributed to states so far from the $2.5 billion dollar settlement has already been diverted from foreclosure programs, and is being used by states to enrich budgets for other departments and programs!
So how do you feel about this? Should states be required to use the settlement money for foreclosure prevention and reduction programs? Chime in and share your thoughts…I’d love to hear. And maybe a few calls to the Governor’s office might be in order, too!
The Austin Real Estate Buzz 