Yesterday 49 states agreed to take place in the $25 billion
dollar foreclosure settlement from the country’s five largest banks.
Individual states will be awarded funds to assist troubled
homeowners who cannot afford foreclosure
attorneys. But Wisconsin Governor
Scott Walker has stated that the funds distributed to his state will not be
used for foreclosure relief programs. Instead he will use the $25.6 million of
the $31 million awarded to the state to bridge the gap in budget shortfalls.
“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 the damage done to the state of Wisconsin,”
Walker said, according to Think Progress.
State Attorney General J.B Hollen, who has the legal
authority over the money, consulted with Walker to make this decision.
After a year of negotiations this settlement was achieved to
help homeowners facing foreclosure or who are underwater, owing more than their
homes are worth.
This move will likely stir up more ire from Walker’s
critics, who launched a recall effort against the Conservative Governor.
Some homeowners have retained foreclosure lawyers to help them keep their homes, but there are
many who need the assistance provided by state foreclosure relief programs. The
settlement will only help 1 million of the 11 million people facing
foreclosure. The homeowners not eligible for help from the settlement may be
able to avoid eviction when they hire a foreclosure attorney.