Arizona Homeowners Sue Their State For Diverting Foreclosure Fraud Settlement Funds

Several states have taken their share of the money they received as part of this year’s $25 billion foreclosure fraud settlement and diverted it away from its intended use — providing foreclosure relief. According to ProPublica, states have taken nearly $1 billion in settlement money away from foreclosure victims. However, in one state, homeowners are fighting back. As Firedoglake’s David Dayen noted, “in Arizona, a group of homeowners have filed a lawsuit against state Attorney General Thomas Horne and State Treasurer Doug Ducey, arguing that the $50 million the state will skim off the settlement payout for the General Fund (out of a total of $97.7 million) violates the settlement agreement.”