Some of the money in the state’s mortgage settlement with big banks will be paid directly to the state to be used to avoid preventable foreclosures, but there's no legal requirement in Georgia law that it be spent for any particular purpose. Some lawmakers said they want to put the money in reserves.
Mortgage giants Fannie Mae and Freddie Mac are suspending foreclosures and evictions for the holidays starting next week. Several national banks are joining them in a two-week holiday reprieve, but real estate and housing experts said the break will not help most families save their foreclosed homes.
Georgia foreclosures were up in July despite a national downward trend. July foreclosures across the country dropped 7% from June to a four-year low. But in Georgia, they jumped 18%. One expert says, Georgia could be on the leading edge of a forclosure ramp-up after a temporary lull.
Georgia will receive $127 million from the federal government to aid jobless homeowners. The Obama administration announced Wednesday that it will send $2 billion to the states with the worst job markets. Georgia is one of 17 eligible states whose unemployment rates have topped the national average for a year.