Help for foreclosure-related legal proceedings (Sec. 1498)
Homeowners facing legal action from mortgage lenders sometimes find themselves in a tough spot. They can't afford lawyers' fees to defend themselves, but they can't afford not to have representation in foreclosure proceedings when their home is on the line.
To help even the playing field between lenders and borrowers in legal proceedings, the financial reform law provides grants for legal assistance to low- and moderate-income homeowners to help with costs related to homeownership preservation and foreclosure prevention.
Tenants involved in legal disputes with landlords also will be eligible for assistance. However, the funds can't be used to finance a broader class-action lawsuit against a financial institution or landlord.