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Ohio Awarded $335 Million Through Settlement

The $25 billion, 49-state settlement awarded Ohio with $335 million to be used for recovery and prevention efforts.


""This settlement will provide much-needed relief to Ohio homeowners and communities and help our state to recover from the destruction left behind from the mortgage financing crisis,"" said Ohio Attorney General Mike DeWine in a release.

About $102 million will go towards loan term modifications, $44 million for wrongful foreclosures between January 1, 2008 through December 11, 2011; $90 million for the refinancing of underwater loans; and $97 million for the AG's of office to


help with issues related to foreclosure including the investigation of mortgage scams.

""In Ohio, part of the money will go to demolish vacant properties, which is a great need in many parts of the state where entire neighborhoods have been destroyed by the foreclosure crisis,"" said Deonna Kirkpatrick, director of communications for ""Empowering and Strengthening Ohio's People"":http://www.esop-cleveland.org/ (ESOP).

Through the creation of a grant program, the AG's office will set aside $75 million to fund the removal of vacant and abandoned properties, which decrease the value of surrounding homes. While the exact number in Ohio is unknown, the estimate is 100,000 properties.

The AG's office also plans to apply $2 million to expand the Economic Crimes Division to increase efforts in prosecuting criminals involved in scams and educate Ohioans about financial fraud.

""While we think the settlement is a good start to repairing the damage, it is just that, a start,"" said Kirkpatrick. ""There are still some shortcomings, most notably the fact that it does nothing for customers of Fannie and Freddie.""

Many Ohioans are underwater, with nearly one in three borrowers owing more than their home's value.

About Author: Esther Cho


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