Michigan in line for $100 million foreclosure settlement

Mar 9, 2012

A federal judge is expected to approve a settlement between states and some of the nation’s biggest mortgage lenders. The deal is expected to net Michigan about $100 million. State Attorney General Bill Schuette  has a plan for how to use the money.

Schuette says some states want to use the money to plug budget holes. But he says Michigan does not face a budget crisis, and the settlement is supposed to help people who have lost their homes or are at risk of losing their homes.

“That’s got to be the clarion call – is helping people who have been victimized by the banks, or the scams, or are just hanging on right now,” Schuette says.

Schuette’s plan calls for mortgage counseling for people facing foreclosure, restitution for victims of mortgage fraud, and assistance for homeless veterans and children. Schuette says that would use up $100 million pretty quickly.

It will ultimately be up to the Legislature to approve a plan for how to use the money.