March 14--The Lawyers Trust Fund of Illinois has received $13 million to help individuals in Illinois navigate through foreclosure-related problems as homeowners or renters.
The money is part of a settlement the U.S. Justice Department and several states reached with Bank of America over practices handling mortgage-backed securities during the nation's subprime housing episode. Five other states have also received funding. The settlement involved $7 billion in consumer relief.
Mark Marquardt, executive director of the Lawyers Trust Fund, said his organization will disseminate the $13 million for Illinois through grants to nonprofit legal aid organizations that help individuals deal with foreclosure in Chicago and throughout the state. The legal problems do not have to date back to the nation's subprime or foreclosure crisis that erupted around 2007, and renters in buildings going through foreclosure will also be able to get help.
While the fund will start disseminating funds in 2017, many organizations already are providing advice and representation to people dealing with foreclosure "so if you are facing foreclosure and need help, seek it now," he said. The grants the fund will provide will help the organizations extend their services over the next few years, he said.
Individuals seeking housing legal aid help can start with Illinois Legal Aid Online.
Besides housing-related help, some funds also will go toward community redevelopment legal issues, which Marquardt said his organization has yet to define.
gmarksjarvis@tribpub.com
