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Justice Quarterly Summer 2010
News for Advocates
from Vermont Legal Aid |
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Ah, summer. Time to get to all of those house projects we couldn't do when we were buried in snow and it was so cold the snow squeeked and we coughed when we breathed. Not now. The air is soft and fragrant and there's plenty of light. We're all feeling happier, more expansive. People are buying houses and moving to new rental homes, enjoying the local watering hole, relaxing in the yard or on the deck, and gardening and grilling.
And time, again, to think about fair housing for all. Vermont Legal Aid receives a grant from the United States Department of Housing and Urban Development to conduct housing discrimination testing and enforcement in Vermont. We investigate housing discrimination and represent tenants, homeowners, and home seekers statewide in asserting their right to equal access to housing. Do you know someone who was discriminated against in housing because of her race, color, national origin, sex, or religion or because of her minor children or disability? Give us a call. We can help. (800) 889-2047.
As we go about our summertime activities around the house and our community, let's not forget our neighbors who don't have a home and the people who would be our neighbors but for being turned away for "more desirable" renters or homeowners.
And let's imagine a future Vermont where people of all backgrounds, colors, incomes, family types and sizes, and traditions live side by side, enjoying all that summer in Vermont has to offer. Let's imagine older people, younger people, and children growing up together, working, and living together in integrated communities that benefit all of us |
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Vermont Foreclosure
Mediation Program |
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As of July 1st, Vermont homeowners at risk of foreclosure have the legal right to request a court-supervised mediation with their lender or mortgage servicer to discuss options for staying in their homes, according to a new law.
The new legislation recently passed by the Vermont General Assembly imposes new notices and procedures as preconditions to foreclosure. By law, only owners of occupied primary residence of four or less units are entitled to the Foreclosure Mediation Program. Likewise, the mediation program only applies to foreclosure actions involving loans subject to the Federal Home Affordable Modification Program (HAMP.) Because homeowners are not likely to know whether their loan qualifies, they should err on the side of requesting mediation or call the number below for further assistance.
The new legislation requires lenders to serve upon a defaulted homeowner two mediation notices in conjunction with the summons and complaint. The homeowner can request mediation simply by filling out the notice form and sending it back to the court.
In foreclosure cases filed on or after July 1st, homeowners have the right to request mediation up to four months after the judgment has been entered. The law also applies retroactively to foreclosure actions filed before July 1, 2010. In those cases, homeowners can still request mediation but only up to 30 days prior the end of the six month redemption period (six months after judgment has entered).
Currently, the Foreclosure Mediation Project, funded by the Vermont Attorney General Office, is carrying out a statewide Homeowners' Outreach Program with multifaceted education and outreach activities to homeowners in danger of foreclosure. Referrals can be made to the project by calling (802) 839-1339 x396.
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Tax Debt Settled for Pennies?
Don't Count on It! |
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Clients frequently ask about companies that claim magical powers to wipe away tax debt. Some tax debt relief firms may be helpful, but many are not. In some cases, taxpayers end up sending thousands of dollars to a company only to receive no help with their debt. Vermont Legal Aid's Low-Income Taxpayer Project provides these same services for free. We encourage people who are interested in an offer in compromise to call for a consultation.
In extreme circumstances, the IRS will settle old debts for a small percentage of the outstanding balance. In 2008, the IRS accepted just 24% of all settlement offers submitted. Generally speaking, a successful offer in compromise will come from a taxpayer who has no valuable assets and little to no disposable monthly income after basic expenses. The taxpayer needs to prove to the IRS that they will never be able to pay the full amount.
Taxpayers should be wary of any company that makes promises based on an initial 30-minute consultation. An extensive financial analysis is necessary in order to determine if an offer in compromise is appropriate, and if so, how large the offer must be. That's because the IRS requires documentation of every asset and expense, in great detail.
The Consumer Protection Unit of the Vermont Attorney General's Office investigates and prosecutes violations of Vermont's consumer laws, which prohibits businesses from engaging in unfair or deceptive acts or practices. The Attorney General's Office has reached numerous settlements with debt relief companies in recent years. Individuals can file a complaint with the Attorney General's Consumer Assistance Program by calling: Toll Free In VT (800)649-2424 or (802) 656-3183. Have an IRS tax problem? We can help. Call Vermont Legal Aid at (800) 889-2047. If you live in Central Vermont, call the Central Vermont Low Income Taxpayer Clinic. (800) 639-1053. |
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In response to these tough economic times, Vermont Legal Aid's Senior Citizen Law Project is opening up a Consumer Hotline. Consumers over sixty years old and their advocates can call 1-800-889-2047. Vermont Legal Aid will take down contact and income information and then transfer the consumer directly to an attorney. The attorney will provide quick advice and court papers on such areas of the law as debt collection, foreclosures, bankruptcy, fraud, and financial exploitation. Please feel free to give us a call!
Legal Aid's Senior Citizen Law Project is also conducting a survey of Vermont seniors' legal needs. |
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Vermont Legal Aid's New Website |
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| Come check out our new home on the web at our same location: www.vtlegalaid.org. Also check out our legal education website: www.vtlawhelp.org |
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Thank you for reading Justice Quarterly. Please feel free to forward JQ to anyone who may be interested in Vermont Legal Aid's work |
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