Personal Finance

Financial News Roundup: Some States Restore Unemployment Benefits, Strategic Defaults Increase

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New data shows more homeowners are walking away from mortgage obligations.Today’s top news headlines feature reasons a growing number of homeowners are walking away from their mortgages and why some states are placing a large number of employees on unpaid leave. Plus, find out why some states are restoring unemployment benefits.

North Carolina and Tennessee Restore Jobless Aid
The Huffington Post

Unemployed residents in North Carolina and Tennessee have seen their unemployment benefits restored, bringing much needed relief to a growing number of households. Federal unemployment assistance programs were halted in April, namely due to disagreements among local and state leaders in N.C. and confusion over certain procedures in Tennessee.

Number Of Strategic Defaulters Increase
CNN Money

New data reveals more underwater homeowners refuse to continue paying their high mortgage balances, and have opted to strategically default instead. CEO Jon Maddux recently told CNN Money that his client base has increased by 10 percent in 2011, as more homeowners seek advice on how best to default on their mortgage. Additionally, separate data from Fannie Mae shows the number of Americans who said they would consider walking away from their homes increased 15 percent in 2011, climbing to 27 percent of homeowners.

Budget Constraints Force County Workers To Take Unpaid Leave In Jefferson, Alabama

Shortfalls in Jefferson County, Alabama, have prompted leaders to force roughly one-third of workers to take unpaid administrative leave for a minimum of 60 days. In addition, the county is currently on the brink of bankruptcy due to a sewer bonds debt totaling $3.2 billion. If this occurs, it will be the largest municipal bankruptcy in history.

ATM Network Extends To Jails

Continental Prison Systems recently announced it will place ATM kiosks in the lobbies of Rikers Island, allowing prisoners, family members and friends to deposit money for the purposes of bail. The kiosks will also hold prisoners’ funds until after their release. Each kiosk will have different functions, one allowing family members to deposit funds into prisoner accounts, another handling bail and others allowing prisoners to deposit their funds for safekeeping.

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