Federal Grant Gives Wisconsin Homeowners in Danger of Foreclosure Access to Legal Assistance, But Strict Rules Limit Eligibility and Allow Lawyers Only to Advise, Not Sue
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Author: Paul Gores
Source: “Federal Rules Entangle Housing Help,” Milwaukee Journal Sentinel (WI)
Date: February 24, 2010
The Journal Sentinel reports: “Homeowners in danger of foreclosure can receive free legal help through a $150,000 federal grant to Wisconsin's housing finance authority, but rules that came along with the grant have limited the money's use, officials and lawyers say. The main hang-ups: The legal help can't go to people whose homes already are in foreclosure, and only people who are referred to the lawyers by an approved housing counseling agency can qualify. Kate Venne, spokeswoman for the Wisconsin Housing and Economic Development Authority, or WHEDA, said there is enough money left to help about 60 people. Venne said when the grant was written by the National Foreclosure Mitigation Counseling Program, ‘it was very restrictive in who was eligible.’ Nonetheless, the two legal organizations WHEDA is reimbursing for work they do under the grant - Legal Aid Society of Milwaukee Inc. and Lakelaw, a law practice with offices in Kenosha and La Crosse - say they are ready to take more referrals. . . . Under the grant, the lawyers can offer analysis and advice, but not sue, [David Leibowitz of Lakelaw] said. Catey Doyle, chief staff attorney for the Legal Aid Society, said that while the rules for the program are complicated, it could help keep some people in their homes. WHEDA has a list of housing counseling agencies around the state that can make referrals at www.wisconsinforeclosuresource.com. But Doyle said homeowners interested in the help can first call her office or Lakelaw, and they will pass names to housing counselors for a referral. The Legal Aid Society number is (414) 727-5300. Lakelaw can be reached at (866) 525-3529.”