Judge rules California owes $331 million to homeowners

[Little Tich]

Source: Yahoo! News / Reuters

SAN FRANCISCO (Reuters) - A California judge has ruled the state is obligated to pay $331 million in mortgage relief funds it used to bolster its finances, but stopped short of ordering that the money be turned over to homeowners hard hit by the mortgage and foreclosure crisis.

Instead, Judge Timothy Frawley of Sacramento County Superior Court in his ruling on Friday said it is up to Governor Jerry Brown and lawmakers to come up with a plan to return $331 million that was part of the $25 billion National Mortgage Settlement of 2012 when the state has money available to do so.

Robert Gnaizda, general counsel for the three groups that brought the lawsuit, said now that California's budget has swung to a surplus and Brown and lawmakers are debating what to do with it, the state is in position to begin making payments.

"We would be happy to work with the governor on a distribution schedule," Gnaizda said, adding that Frawley's ruling could spur other states that also held on to their proceeds from the settlement to release the money.

Read more: http://news.yahoo.com/judge-rules-california-owes-331-million-homeowners-002830248--sector.html

[Demeter]

1. What scuzzy slimeballs!

[Scuba]

2. I wonder if there's a Wisconsin court that would come to the same conclusion ....

http://www.forbes.com/sites/rickungar/2012/02/11/gov-scott-walker-pockets-money-intended-for-wisconsin-foreclosure-victims-to-make-up-state-budget-shortfall/

Gov. Scott Walker Pockets Money Intended For Wisconsin Foreclosure Victims To Make Up State Budget Shortfall

Walker is directing the State of Wisconsin to keep a large chunk of the money from this week’s national settlement with five of the nation’s largest mortgage lenders —money intended to help compensate those who were victims of the illegal mortgage practices that caused so many to lose their homes and to aid in the rebuilding of stricken neighborhoods—so that the state’s budget gap can be closed and Gov. Walker can head into his recall election able to claim that he has balanced the state budget.

One thing I do know: I Squatty appealed such a decision to the State Supreme Court, it would rule in his favor.