Vermont’s General Fund Benefits From Foreclosure Settlement

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Vermont’s general fund has benefited from the national settlement of a foreclosure complaint.

The nation’s five biggest banks agreed to pay $2.5 billion to 49 states to address problems with mortgage foreclosures. Vermont qualified for $2.6 million.

The independent news organization ProPublica analyzed how states spent the money and concluded that much of it hasn’t gone to homeowners who have been involved in the foreclosure crisis.

ProPublica says in Vermont, $500,000 has been dedicated to a statewide network of counseling centers for homeowners. But 78 percent of the aid went to the state’s general fund.

Vermont’s mortgage delinquency rate has been much lower than the national average. So the crisis has been muted here.

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