MORTGAGE FORECLOSURE DEFENSE WORK 1 MORTGAGE FORECLOSURE DEFENSE WORK

Legal Aid of NC, Inc. Legal Aid of North Carolina is a statewide, nonprofit law firm that provides free legal services in civil matters to low-income people in order to ensure equal access to justice and to remove legal barriers to economic opportunity Legal Aid Services 1) representing clients to ensure that the community has equal access to justice; 2) performing outreach to make the community aware of its rights; and 3) providing education to empower the community to develop its own legal strategies and to defend its rights by itself. Client Profile(s) Fall below 125% of FPG Fall below 200%) of FPG for mortgage foreclosure cases of the federal poverty guidelines. 3.5 million financially-eligible people (30% of NC pop.) Yr-2008, MI= $9,000, [living wage=$25,626 ] LANC Profile 130 attorneys and 125-member support team I 24 geographically-based covering 100 counties 6 statewide projects* [Advocates for Children’s Services; Battered Immigrant Project; Domestic Violence Initiative; Farmworker Unit, Legal Aid of NC; Senior Law Project; Mortgage Foreclosure Prevention Project] 2 MORTGAGE FORECLOSURE DEFENSE WORK

Mortgage Foreclosure Defense Work Mortgage Foreclosure Prevention Project -- (MFP) Mission: [Asset Retention] Represent Low-Income Families Who Live in NC and Are Faced With Possibility of Losing a Primary Residence Staff Profile: 5 attorneys 3 paralegals Staff Services Consult. & Asst. to Local Offices Case Strategy Document Review (legal claims) Research/Pleadings Co-Counseling Lost Mitigation [Loan Modification]* Direct Litigation* MFP Process – Case Referrals from Local Offices Active Foreclosure Request for Loss Mit. [pre-foreclosure] Client Loan/Income/Gen Info Submitted by Advocate to MFP Liaison Chris McCallum – LANC Fayetteville Office / X114 Weekly Conference Call Weekly Case Consultation Case Referrals from Community Orgs. Active Foreclosure Request for Loss Mit. [pre-foreclosure] Client Loan/Income/Gen Info Submitted by Community Org to Local Office Client Loan/Income/Gen Info Submitted by Community Org to MFP Liaison** Carolyn Kent – LANC Goldsboro Office / Weekly Conference Call Kept In-House / Refer to Local Office 3 MORTGAGE FORECLOSURE DEFENSE WORK

MFP Foreclosure Stats to date – 2004 through September MORTGAGE FORECLOSURE DEFENSE WORK

Mortgage Foreclosure Defense Work [Con’t] National Foreclosure Mitigation Counseling Program [NFMC]: Assist Foreclosure Mitigation Counseling Process Counselors Refer Cases for Loan Mod Negotiations [as a way to reduce their caseloads] Counselors continue working with their clients on budgeting/debt-management NFMC Process – Case Referrals from Participating Housing Counselors: [Associated with NCHFA and CCCS of Greensboro as lead agencies] No Active Foreclosure Request for Loan Mod Asst. Initiating/Loan Mod Process Reviewing Pending Loan Mod Proposal/Offer Legal Assistance Referral Form/Client Release/Loan/Budget & Income/Loan Info Submitted by Counselor to NFMC Liaison Carolyn Kent– LANC Goldsboro Office / Clients Screened for Eligibility Retainer Issued* Weekly Conference Call Case Assignment to NFMC Attorney Transfer into MFP Process* Yes % of FPG, Loan Mod. Not Achieved w/in 4hr timeframe] and/or Foreclosure Initiated No – Client Above 200% of FPG, Loan Mod. Not Achieved w/in 4hr timeframe Pro Se Packet Issued 5 MORTGAGE FORECLOSURE DEFENSE WORK

NFMC Loan Mod Stats To-date – May September 2009 No Loans Coming Through Project Have Been Lost Through Foreclosure* 6 MORTGAGE FORECLOSURE DEFENSE WORK

LANC Coordination Between Housing Counselors & Mortgage Foreclosure Defense Work Housing Counselors (Loss Mit. Counseling) (Loan Mod*) LANC MFP Project (Legal Defense & Loss Mit. Case Consultation & Prep. Asst.) LANC NFMC Project (Loan Mods.) LANC Local Offices Legal Defense & Loss Mit.) LANC Volunteer Attorney Network Legal Defense & Loss Mit.) NCHFA & CCCS - Greensboro LANC Eligible/Non- Qualifying NFMC LANC Eligible 7 MORTGAGE FORECLOSURE DEFENSE WORK

Steps Leading to Loan Modification Success LANC MFP Project LANC NFMC Project Aggressive Collection/Review of Loan Docs Intensive Assessment of Financial Position Intensive Assessment of Extenuating Circumstances Intensive Assessment of Legal Claims Aggressive Mediation/ Negotiation Efforts Non-Legal Legal Aggressive Legal Efforts Special Proceedings State Court Bankruptcy Court 8 MORTGAGE FORECLOSURE DEFENSE WORK

MFP Foreclosure Stats to date – 2004 through September 2009 % Loan Mods, MFP Project 9 MORTGAGE FORECLOSURE DEFENSE WORK

MFP Foreclosure Stats to date – 2004 through September MORTGAGE FORECLOSURE DEFENSE WORK

Contact Info LANC MFP Project Johnnie C. Larrie [Project Manager] LANC – Fayetteville Office P.O. Box 1268, Fayetteville, NC x 108 [OfficeTele] Pamela Thombs [Project Manager] LANC – Smithfield Office P.O. Box 371 Smithfield, NC [Office Tele] Chris McCallum [Project Paralegal] LANC – Fayetteville Office P.O. Box 1268, Fayetteville, NC x114 [Office Tele] [ ] LANC NFMC Project Pamela Thombs [Supervising Attorney] LANC – Smithfield Office P.O. Box 371 Smithfield, NC [Office Tele] Carolyn Kent [Project Liaison] LANC – Wilson Office P.O. Box 2688, Wilson, NC [ ] 11 MORTGAGE FORECLOSURE DEFENSE WORK