Denied – Lawmakers Reject Legal Aid Money for Troubled Borrowers

Lawmakers Reject Legal Aid Money for Troubled Borrowers

U.S. House Republicans on Friday blocked a last-minute effort to allow foreclosure-prevention funds to be directed to legal aid groups, arguing it was an inappropriate use of financial rescue money.

Lawmakers failed to pass a bill sponsored by Rep. Marcy Kaptur (D., Ohio) that would allow those groups to receive money through a federal program to assist homeowners on the verge of foreclosure.

The bill needed a two-thirds vote to pass because it was brought up under a special House procedure intended for uncontroversial issues. It fell short, in a 210-145 vote, largely along party lines.

The Treasury Department has allocated $7.6 billion to 18 states and the District of Columbia through the Hardest Hit fund, which uses money from the $700 billion Troubled Asset Relief Program.

Currently, legal aid groups are not able to receive such assistance. Treasury Secretary Timothy Geithner said in a letter to lawmakers Friday that he supports legislation allowing them to do so.

Republicans said the measure amounts to a continuation of the deeply unpopular government bailouts. Speaking on the House floor, Rep. Lee Terry (R., Neb.) said Democrats are “attempting to bring the bailout back to life for the sole purpose of showering taxpayer money on community groups that provide legal assistance.”

You can check out the rest at the WSJ here…

The Bill: Aiding Those Facing Foreclosure Act of 2010

Dec 17, 2010: This bill failed in the House of Representatives by roll call vote. The vote was held under a suspension of the rules to cut debate short and pass the bill, needing a two-thirds majority. This usually occurs for non-controversial legislation. The totals were 210 Ayes, 145 Nays, 78 Present/Not Voting.


HR 5510 IH


2d Session

H. R. 5510

To amend the Emergency Economic Stabilization Act of 2008 to allow amounts under the Troubled Assets Relief Program to be used to provide legal assistance to homeowners to avoid foreclosure.


June 10, 2010

Ms. KAPTUR introduced the following bill; which was referred to the Committee on Financial Services


To amend the Emergency Economic Stabilization Act of 2008 to allow amounts under the Troubled Assets Relief Program to be used to provide legal assistance to homeowners to avoid foreclosure.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


This Act may be cited as the ‘Aiding Those Facing Foreclosure Act of 2010’.


Section 109 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5219) is amended by adding at the end the following new subsection:

‘(d) Legal Assistance-

‘(1) — USE OF FUNDS- The Secretary may use any amounts made available under this title that are not otherwise obligated to provide assistance to nonprofit counseling intermediaries and nonprofit legal organizations to provide legal assistance to homeowners of owner-occupied homes consisting of from one to four dwelling units who have mortgages on such homes that are in default or delinquency, in danger of default or delinquency, or subject to or at risk of foreclosure, to assist such homeowners with legal issues directly related to such default, delinquency, foreclosure, or any deed in lieu of foreclosure or short sale.

‘(2) PROHIBITION ON LITIGATION- Paragraph (1) may not be construed to authorize the use of any amounts made available under this title to provide, obtain, or arrange on behalf of a homeowner, legal representation involving or for the purposes of civil litigation that is not directly related to any such default, delinquency, foreclosure, or any deed in lieu of foreclosure or short sale.

‘(3) AUTHORIZATION- Amounts used as described under paragraph (1) shall be deemed to be for actions authorized under this title.’.



House Vote On Passage H.R. 5510 Aiding Those Facing Foreclosure Act of 2010
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4 Responses to “Denied – Lawmakers Reject Legal Aid Money for Troubled Borrowers”
  1. Whippy FLoggman says:

    This article is BS!

    By the Way, FLORIDA is a PRO BANK STATE that uses its lobby to re-elect its reps! Thats why BILL MCCULLOM ain’t done crap to stop Bank FRAUD & COURT FRAUD!

  2. John R. says:

    I am really surprised at Florida’s percentage of no votes! With 25 possible votes there were 9 nays! I’m in Ohio where we have only 18 votes, but we’ve been at this foreclosure issue much longer and the 3 nays, I think shows our politicians are representing the citizenry in this issue a little better.

    Of course my opinion here is biased… i wouldn’t be reading and writing here if it wasn’t.

    But the evidence, to those of us who’ve taken the time to review it, is more than obvious, and there is, I think, no need here to discuss that further. The facts are on our side, the Law is on our side and almost half the Politicians seem to be on our side.

    It seems more to the point that the majority of the media, the Judge’s and those other politicians aren’t on our side.

    Several thoughts are coming to mind.

    In a court of law, when there’s a decision, there’s also a tool used to get “clarity” on that decision and it’s called a Motion for Clarity. I wonder the effect of asking each dissenting politician for a public statement of clarity as it regards their vote on this issue. With enough requests, they might just issue one and if they did it might also open them to studying the issue more thoroughly and hopefully awaken them to the full dimension of the problems facing us all.

    After reading this article in HuffPo titled “Wealthy Have Difficulty Detecting Emotions: Study here”…
    I’m beginning to think that the foreclosure fighting movement has already convinced those with empathy and now might be a good time in the fight to start targeting the others. Profiling as it were.

    I wish I could offer the “silver bullet”. I’d give it freely. All I can offer is the observation of an empathetic and creative person. My empathetic side is screaming, and it hurts. My creative side is looking for yet another effective way to fight.

    Our strength is in unity. Our ammunition is the truth. Our victory will be determined on our actions.

    Sadly, our unity is gained through the pain of foreclosure. Emotionally and financially devastating. We are all related by the pain of either loss or potential loss. Cripples banding together to fight the good fight.

    The ammunition is gathered in abundance in this and many other web sites, and is growing in leaps and bounds every day.

    As for Victory… I’d say we’re half way there.

    remember Ghandi’s saying;
    1st they laugh at you
    then they ignore you
    then you win.

    When I started many years ago, they actually did laugh at me when I asked for Discovery. Then they let the Bank steal 9 of my properties.

    This time around, they ignored my pleadings and ruled against not only the greater weight of the evidence, but also against this State’s “on point” Supreme Court’s decisions. It was obvious they didn’t even read my pleadings.

    It’s very disheartening to go into court after spending hundreds of hours studying rules, regulations and procedures and then spending that many more hours writing a pleading that shows so many counts of fraud and deception that it’s obvious who’s is right and just who is lying, who has standing and just who doesn’t and then to lose to a lawyer who, with the stroke of a lying and maliced pen, stooped to slander and liable as his only real tactic. And in so doing, effectively ruined my own personal reputation and any slight chance I might have had at employment in my own chosen profession forever.

    But I’m not done. They’ve left me with nowhere to go and no money to get there… so the fight rages on.

    It might be time for us all to start thinking out of the box, start getting a little more creative. Whatever to each of us that means. Besides violence and civil disobedience, what else CAN be done?

    If anyone can come up with a good idea, just write it in these websites. If it strikes a chord with enough people it will spread like wildfire.

    Until then, I do think that this list gives all foreclosure fighters a list of those who’s opinions need to be swayed and their eyes opened to the reality of the situation at hand.

  3. Lit Gant says:

    Republicans are a joke. And to think we gave them the house. What? Gave them the house? A house with the mortgage current paid by the tax payers? This is the Tea Party in action. But this group of cold-hearted legislators needs a lesson in American history. We gave up tea for coffee. Now coffee is the choice of hot breakfast drinks. Ok, if Republicans want to hate Americans who are in distress because of mortgage fraud, it is time to vote against these miscreant rich politicians. We should make sure we never vote for a Republican again. Vote no to ervery future Republican candidate from the dog catcher to the White House.

  4. George Frederick& Cecilia Engle says:

    What does on expect from the ilk of these…

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