CRL Launches Foreclosure Legal Aid

Many homeowners facing foreclosure in 10 hard-hit states will be able to get legal assistance thanks to the Center of Responsible Lending and a $15 million grant from a hedge fund.Paulson & Co. Inc., New York, is providing the funds for the CRL's new Institute for Foreclosure Legal Assistance, which will support legal aid groups and law school clinics that provide legal services to subprime borrowers in danger of losing their homes. "By providing funding and other support for attorneys who can review loan documents and negotiate with loan servicers, we believe that many more homeowners will be able to stay in their homes," CRL chief executive Martin Eakes said. The National Association of Consumer Advocates is managing the legal assistance project. "We hope to be able to provide legal representation to at least 5,000 families with these funds," NACA executive director Ira Rheingold said.