Georgia Lawmakers Divert Foreclosure Settlement Funds to State Budget

Last week, foreclosure starts rose significantly across the county and Georgia entered the number one in the country, but instead of using their portion of the national foreclosure settlement to help troubled homeowners, lawmakers in the state decided to put those funds into the state’s general fund.

Funds from the national foreclosure settlement were intended to give assistance to troubled homeowners and offer aid to communities plagued by foreclosures through counseling services, paying for foreclosure attorneys and community revitalization programs. But many states have decided to use those funds to make up budget shortfalls. Georgia Governor Nathan Deal has decided to use the $99 million awarded to his state for corporate incentives.

States have control on how those finds are distributed, but many have forsaken homeowners. Thousands of people and their communities could benefit from foreclosure prevention. Having large number of foreclosures in a community decreases the value of homes; empty homes become magnets for crime and vandalism, in addition to being eyesores.

Even without access to federal funds, homeowners have alternatives to foreclosure like a mortgage modification or a short sale. The exact course of action a homeowner should take can be detailed by a Georgia foreclosure lawyer.

Homeowners are encouraged to get help with a short sale or loan modification. A Georgia foreclosure lawyer can work with the banks and avoid the run-around, making it easier for a person to keep possession of their homes or keep a foreclosure off their credit.