II 111th CONGRESS 2d Session S. 3979 IN THE SENATE OF THE UNITED STATES November 29, 2010 Mr. Brown of Ohio (for himself, Mr. Durbin, Mr. Whitehouse, Mr. Merkley, Mr. Reed, Mr. Menendez, and Mr. Wyden) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL 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.

1.

Short title

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

2.

Foreclosure avoidance assistance

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 obligated under this title 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. .