Lawmakers Divert Funds Intended for Struggling Homeowners
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(COLUMBIA, S.C.) -- South Carolina received $31 million in a settlement to assist homeowners who are unable to pay their mortgages, but lawmakers want to spend the money on other things, The Post & Courier reports.
The Republican-controlled Legislature wants to see the money go towards new business, but Democrats want to see the cash help families who suffered in the foreclosure crisis.
The Senate's budget is one vote away from approving the transfer of $10 million from the settlement to the Commerce fund, and $5 million to the S.C. Housing Authority to provide legal services for families facing foreclosure. The remainging funds were put into the general fund in the Senate's budget.
The S.C. Appleseed Legal Justice Center expressed disappointment that the settlement money was diverted, and is asking senators to provide more than $5 million of the money to homeowners, according to The Post & Courier.
The money is part of a $25 billion settlement that involves five of the nation's biggest loan providers to settle state and federal investigations into illegal foreclosure practices.
Copyright 2012 ABC News Radio
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