Why is the $26 billion in mortgage settlement funds being redirected?

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Thom Hartmann A...
Thom Hartmann Administrator's picture

American homeowners are still getting screwed.  Even though the $26 billion mortgage settlement deal was intended to go straight to helping homeowners stay in their homes – states like Missouri and Wisconsin have announced plans to redirect that money toward closing budget loopholes in their state governments.  Now Ohio is the latest Republican-run state to say it will not use settlement funds to help homeowners. 

Ohio is set to receive $97 million under the settlement – and plans to use $75 million from it to bulldozed vacant and foreclosed homes.  So instead of using the money to KEEP people in their homes – Ohio is using it to demolish homes.  Even worse – this is another secret bailout for the banks that supposedly own the abandoned homes and are thus in charge of their upkeep or demolition.  The farther and farther removed we get form this settlement deal – the more and more it looks like a bad deal for homeowners – and another sweet deal for Wall Street.


I'm shocked, SHOCKED! The

I'm shocked, SHOCKED!

The settlement was supposed to be for bad acts committed by the banks when they were foreclosing on homedebtors.  So the proceeds should have gone to those foreclosed persons, not current homedebtors. So I guess if the wronged parties weren't going to get the remedy anyway, it doesn't matter who gets it.

Bush_Wacker's picture
Grand Theft.  Nothing more. 

Grand Theft.  Nothing more.  The simple fact that we as a nation keep putting up with this makes us an accomplice.  It is truly sickening.

Karolina's picture
What can be done? Congress

What can be done?

Congress people w/ any courage are about one in one-hundred-fifty. 

DRC's picture
Don't let your friends elect

Don't let your friends elect Republican governors.

Karolina's picture
Sorry, DRC, but I really am

Sorry, DRC, but I really am not sure if you are serious or kidding? I am in Indiana at the moment, and I unbearably miss NYC where I have lived my entire adult life. I don't talk to anyone who would vote for a Republican governor unless they are mowing the lawn or fixing the garage door. And the conversations are minimal.

Sprinklerfitter's picture
I don't know what part of my

I don't know what part of my state you're in but I hope your stay is a good one. I was born in Indiana(Washington) raised in the suburbs of Louisville and about 20 years ago my wife and I built our house down here in the southern part of the state not too far west of Louisville. We live on a dead end road in a country setting even though we're in a subdivision with roughly 2 acre lots. Plenty of woods behind the house that are full of deer and most of the time they come out about one hour before dark. My wife took several pictures not long ago where there were 8 of them feeding right off of deck on the back of the house. Pretty neat to see them all the time.

Karolina's picture
Actually, Sprinklefitter, my

Actually, Sprinklefitter, my childhood was spent in Miller Beach, right by Lake Michigan, a one hour train ride into Chicago on the South Shore Line or a 40 minute drive on the Skyway. Miller was a very pretty little town in the 60's, and most of the people there were professionals, but back then—very liberal.

Later my parents, like you and your wife, also built their dream house in a country setting a little further south in the county. I am here taking care of my remaining parent who is house-bound with Parkinson's. We're waiting for a cure for this mean disease. I guess we'll be waiting "a bit" longer, now!  :o) 

Most of the people in this town are very much FOX watchers, and I get very annoyed when they ask me things like "Have you ever read a GREAT book called "Atlas Shruged"?"