The foreclosure crisis would not have been so intense if the borrowers had been properly legally represented. Then they would have had the sling with which to give Goliath a blow; otherwise the odds have been unfair – the mega lenders and the humble borrowers.

Thus at the heart of the jumbo foreclosure crisis is the legal crisis. The Legal Services Corporation of LSC has reported that representation for those coming from the poor category has been unsatisfactory. The legal services are overwhelmed right across the country with requests for legal help in foreclosure matters. Very few are able to avail of proper legal help.

From 2007 to 2008, 60% of those facing foreclosure on their properties did not have legal advice. 84% of those in similar circumstances in New York were remained sans legal help. They had been peddled sub-prime or high cost loans that were not traditional and were disproportionate to their levels of income. In Staten Island (Richmond County) 91% of similar defendants were not represented. In Nassau County it was 92%. In Ohio’s Stark County 86% of the foreclosure victims did not have any sort of legal help in 2008.

Having a lawyer makes a lot of difference. For some, foreclosures may have no other alternatives but this is not the case for many others. The lawyer can assist the borrower to save their properties and in a wider sense bring back stability to the community. There are for many solid legal grounds for halting foreclosures; alternative routes also may open up. But few of the victims are even aware that such options exist.

Legal intervention can locate the cases where the state and or federal laws have been violated by the lenders. Consumer protection laws can also be enforced. Defenses put forward will make the lenders retract from their aggressive attitude and do some rethinking. Slowing down of the foreclosure proceedings will buy time for the borrowers to find positive viable alternatives.

The legal help system of America is not prepared to deal with the problem of such magnitude as this crisis. Even under normal circumstances the funds are insufficient. From 1996 the federal contributions were cut by a third. Ironically just when the need for legal help had reached its peak the recession set in forcing further cuts by the local as well as state governments and private organizations towards legal assistance organizations.

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