FOR IMMEDIATE RELEASE
NEWS ADVISORY
May 23, 2013
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
Claire Haynes (334) 242-7351
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AG STRANGE AWARDS MORTGAGE SETTLEMENT FUNDS
(MONTGOMERY) – Attorney General Luther Strange today announced the six
recipients of nearly $4 million that his office is awarding through the National
Mortgage Settlement Funding Program. The money is being distributed to
governmental entities or charitable organizations for projects to mitigate and prevent ill
effects of the foreclosure process for Alabama consumers.
Legal Services Alabama will receive $1,119,730 for its Alabama Foreclosure
Assistance Project to provide free civil legal representation to up to 6,000 low-income
families facing foreclosure or other mortgage-related issues. “Legal Services Alabama is
uniquely positioned to help reduce Alabama’s foreclosure rate by representing
homeowners in all 67 Alabama counties who are facing foreclosure,” said Attorney
General Strange. “Legal Services Alabama will not only assist distressed homeowners
fighting foreclosure, but will also provide housing counseling, pre-foreclosure
counseling, and foreclosure mediation. This comprehensive approach will give
vulnerable homeowners the knowledge and support they need to safeguard their
homes.”
Gateway will receive $1,095,356 to provide financial counseling, pre-and post-
purchase housing counseling, foreclosure prevention, reverse mortgage counseling, and
consumer outreach. “Gateway has an extensive history of working with state agencies,
including the Alabama Department of Human Resources, the Alabama Department of
Mental Health, and the Alabama Department of Education,” said Attorney General
Strange. “Gateway’s successful history in consumer credit counseling and housing
counseling will benefit homeowners in every county facing the foreclosure crisis. By
providing housing counseling and directly engaging lenders to prevent foreclosure,
Gateway will have a lasting impact on the entire state.”
The Woodlawn Foundation, Inc., will receive $500,000 for its homeowner
rehabilitation program to provide rehabilitation services to existing homeowners who
are potentially facing foreclosure. “The Woodlawn Homeowner Rehabilitation Program
is an ambitious, innovative program designed to assist moderate to low- income
homeowners in the historic Woodlawn community by providing needed physical
improvements to residences that are at-risk or could become at-risk of foreclosure,” said
the Attorney General. “These improvements will increase homeowner equity, lower
overall housing costs, and prevent future foreclosures in the deserving Woodlawn
community.”
501 Washington Avenue Montgomery, AL 36104 (334) 242-7300
www.ago.state.al.us Page 2 of 2
The Alabama Center for Dispute Resolution will receive $500,000 for its Alabama
Statewide Foreclosure Prevention Mediation Program to train mediators throughout the
state in foreclosure mediation and provide about 300 to 500 foreclosure mediations.
“The Center has a history of establishing mediation programs in courts throughout the
state, as well as educating mediators in the specifics of various areas of law,” said
Attorney General Strange. “Mediation can be a powerful tool in avoiding foreclosure by
bringing both the homeowner and lender to an agreement. The Alabama Statewide
Foreclosure Prevention Mediation Program will have a lasting impact by helping
homeowners throughout the state avoid foreclosure while educating mediators in
foreclosure law and process.”
The Women’s Fund of Greater Birmingham will receive $440,000 for its Stepping
In to Homeownership project, a three-phase plan that includes a public awareness
campaign a matched financing program and a collaborative effort with other
organizations to provide housing and workforce development services. “The Women’s
Fund has a history of working with this Office and previously used other settlement
funds to develop and implement an innovative program to reduce domestic violence,”
said Attorney General Strange. “Its proposed project, Stepping In to Homeownership,
is another innovative program designed to help low-income women and their children
avoid foreclosure or to become homeowners, to proceed other education and job
placement, and obtain long-term financial security. Women and children in Blount,
Jefferson, St. Clair, Shelby, and Walker counties will receive much-needed support from
this comprehensive program.”
The University of Alabama School of Law will receive $210,870 for a Foreclosure
Relief Project, based upon its similar project for tornado relief, which will provide legal
services free of charge while teaching six to 10 law students each semester. “The
Tornado Relief Assistance Program that the University of Alabama School of Law
created after the April 2011 tornadoes demonstrates the Law School’s success in aiding
low-income and rural communities during a time of crisis,” said the Attorney General.
“Likewise, The Foreclosure Relief Project will have a lasting impact by helping
homeowners in Bibb, Fayette, Greene, Hale, Lamar, Pickens and Tuscaloosa counties
avoid foreclosure while educating future lawyers.”
These funds were made available by Attorney General Strange’s participation in
last year’s $25 billion joint federal-state agreement with the nation’s five largest
mortgage servicers over foreclosure abuses and fraud, and unacceptable nationwide
mortgage servicing practices.
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