Newly Signed Housing Law Provides $30 Million for Legal “Counseling” for Homeowners Facing Foreclosure, but Restricts Use, Prohibiting “Litigation”
Legal Services E-lert
Bibliographic Info:
Author: Legal Services Corporation
Source: Press Release
Date: 7/29/08
Legal Services Corporation ("LSC") reports: "The housing bill approved by the Congress will bolster efforts by legal aid programs funded by the Legal Services Corporation to help low-income Americans worried that they may lose their homes through foreclosure. The bill, the Housing and Economic Recovery Act of 2008, provides $30 million for pre-foreclosure and legal counseling through a new grant program . . . . LSC-funded programs report that many of their legal aid offices could see twice as many requests for help in the coming year as compared to past years . . . . Under the housing bill, the Neighborhood Reinvestment Corporation, a congressionally charted nonprofit that does business as NeighborWorks America, will make grants to housing counselors ‘to hire attorneys to assist homeowners who have legal issues directly related to the homeowner's foreclosure, delinquency or short sale.' No funds may be used for ‘legal representation involving or for the purpose of civil litigation,' according to the bill." The bill was signed into law on July 30, 2008.