The landmark foreclosure deal reached last month was filed in federal court Monday, and state governments are already planning how they'll use the money. Unfortunately, it won't all be going to distressed homeowners.
When it was announced, the pact was criticized for not offering enough help to homeowners. It turns out they may not even get the meager amount that was first discussed.
Each state's portion of the settlement, which in its entirety is reported to be somewhere between $25 and $26 billion, is supposed to be used for principal reductions and refinances. But with states struggling to close budget gaps and fund programs, many governments are planning to divert money from the settlement to other areas of their budgets.
Read the rest of the article at CBS News
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