Friday, August 26, 2011

Billions Meant for Struggling Homeowners Diverted By House Republicans

A new report by the investigative website Pro Publica publicizes that Congress diverted $30 billion in bailout money allocated to help struggling homeowners prevent foreclosure in order to pay down the national debt instead.

There were more than 1 million foreclosure filings in the first half of 2011 alone, yet only a fraction of the government aid that was supposed to reach homeowners has been spent:

Instead, Congress has mandated that the leftover money be used to pay down the debt.

Of the $45.6 billion in Trouble Asset Relief Program funds meant to aid homeowners, the most recent numbers available show that only about $2 billion has actually gone out the door.

The low number reflects how little the government’s home loan modification and other programs have actually helped homeowners deal with the foreclosure crisis.

Read the full report @ Pro Publica.

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