Arizona Legislature takes $50 million from the state’s share of a nationwide mortgage fraud settlement to balance the budget rather than helping homowners.

This was money intended to help families who were losing their homes to foreclosure.

According to the Arizona Supreme court the Arizona Legislature did nothing wrong in seizing $50 million from the state’s share of a nationwide mortgage fraud settlement to balance the budget, as reported in the Arizona Daily Star.  The justices upheld lower-court rulings that nothing in the national settlement agreement signed by Attorney General Tom Horne required him to spend the money only on services that benefit homeowners, including those in danger of foreclosure.

This money should have been spent on people with foreclosure problems instead of going to the general fund.

Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.

foreclosureAttorney Tim Hogan of the Arizona Center for Law in the Public Interest, who sued to block the move, called Tuesday’s ruling “unfortunate.”  “There’s still a ton of people that could have benefited from this money that rightfully should have been spent on people with foreclosure problems instead of going to the general fund,” he said.

And Hogan said the irony is that lawmakers, in demanding the cash last year, insisted they needed it to balance the budget. But by the time the fiscal year ended on June 30, the state had a surplus of nearly $900 million.

Read more about the court ruling…

269 words|1.4 min read|Categories: Attorney fees & actions, Consumer Issues, Deficiency, General Legal Issues, Trustee Sales|By |Published On: September 25th, 2013|Last Updated: May 29th, 2022|

Share this article

Diane L. Drain - Bankruptcy Lawyer

About the Author : Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

In Case You Missed It

  • Published On: July 19, 2023

    IMPORTANT PROGRESS FOR STUDENT LOAN BORROWERS WHO HAVE BEEN IN REPAYMENT TWO DECADES OR MORE Posting from the National Consumer Law Center Important Progress for Student Loan Borrowers Reposting from NCLC, July [...]

  • DOD to Help Military and Their Families SIX New Measures to Enhance Well-Being Release from US Department of Defense, March 22, 2023 Secretary of Defense Lloyd J. Austin III unveiled a comprehensive plan [...]

  • Published On: March 6, 2023

    PEOPLE MAY WANT TO FILE A TAX RETURN – EVEN IF THEY ARE NOT REQUIRED TO DO SO Posting from the IRS & Filing Tips IRS Tax Tip 2023-27, March 2, 2023 [...]

  • New Consumer Law Rights Taking Effect in 2023. This NCLC article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 17, 2022, through December 31, 2023. Other consumer law changes will be enacted later in 2023 and will go into effect in 2023; this article lists changes whose effective dates have already been scheduled.