Wisconsin: Walker to use foreclosure settlement money to balance budget, not help homeowners

[Scuba]

http://thinkprogress.org/economy/2012/02/10/422744/walker-settlement-budget/

Yesterday, 49 states joined the federal government in announcing a $26 billion settlement with five of the nation’s biggest banks over the banks’ foreclosure fraud abuses. The money from the settlement is meant to aid homeowners who lost their homes to foreclosure or who find themselves underwater, meaning they owe more on their mortgage than their home is currently worth.

However, Wisconsin Gov. Scott Walker (R) — whose high profile assault on workers’ rights has prompted a recall effort against him — isn’t planning to use the money to help homeowners. Under the terms of the settlement, Wisconsin is set to receive $140 million, $31.6 million of which comes directly to the state government. And Walker is planning to use $25.6 million of that money to help balance his state’s budget:

Of a $31.6 million payment coming directly to the state government, most of that money – $25.6 million – will go to help close a budget shortfall revealed in newly released state projections. [Wisconsin Attorney General J.B. Van Hollen], whose office said he has the legal authority over the money, made the decision in consultation with Walker.

“Just like communities and individuals have been affected, the foreclosure crisis has had an effect on the state of Wisconsin, in terms of unemployment. . . . This will offset that damage done to the state of Wisconsin,” Walker said.

So the homeowners who were cheated are cheated again so that Walker can lie about the budget.

Recall or conviction, whatever comes first, can't come soon enough.

[ChairmanAgnostic]

1. both would be nice.

[global1]

2. One Should Have Seen This Coming When This Settlement Was Laid Out And Made It Mandatory.....

that any money going to the states had to be used for the homeowners. I wonder how many other states will do the same thing Walker is intending on doing.

[mysuzuki2]

3. not to mention the fact that Walker created the budget shortfall himself

by giving tax breaks to his cronies.

[Viking12]

4. Reason to Recall Walker #4697

[Lefta Dissenter]

5. Wait!

I thought it was #4698. I demand a recount!

[midnight]

6. I hope this is illegal. The money says for homeowners, not state budgets!

Last edited Sat Feb 11, 2012, 03:07 AM - Edit history (1)

Here is a link showing most of the foreclosures in Milwaukee....http://www.foreclosurelistings.com/list/WI/