$41 Million to go to Worthy AZ Homeowners for Foreclosure and Loan Restitution

The AZ Attorney's General Office has announce that $41 million dollars will be given to homeowners to help keep them in their houses and to provide restitution for borrowers who were treated unfairly by lenders. The plan says they will offer short-term cash assistance, loans and principal reductions for those who qualify. The money is coming from the major banks as part of a national $25 billion lender settlement resulting from foreclosures. The Attorney General is still seeking the right agency to administer the efforts. The Attorney General did say that they plan on "helping homeowners who acted responsibly and did not make bad homebuying decisions that left others paying for irresponsible behavior. " Consumers who believe they have been victims of mortgage schemes in Arizona are advised to call 602-542-1797, email mortgagefraud@azag.gov or go to azag.gov/consumer/foreclosure/settlement.html. Eligible homeowners will be contacted after they are identified by the plan's new administrator. The attorney general will handle enforcement and legal services. They are expecting these efforts to take up to three years. Arizona had been allotted nearly $98 million from the national lender settlement, but the state Legislature plans to take $50 million of the funding to offset the state's budget deficit. A lawsuit challenging that allocation has been file by AZ housing advocacy groups.