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.