National Foreclosure Settlement: Several States Using Funds From Deal To Close Budget Gaps
Some states are planning to use the portion of the foreclosure settlement funds for purposes not directly related to mortgages or relief for homeowners. Missouri’s Governor has proposed using his states portion of the settlement funds to make up a short fall in the state budget and avoid budget cuts for state colleges and universities. The same thing happened following the tobacco settlement. Advocates say the lesson is that people must be vigilant to ensure the funds are used for their intended purpose.