- California regulates “foreclosure consultants” under CC: Chapter 278 §§2945-2948
- The State:
- Prohibits a foreclosure consultant from entering into an agreement to assist the owner in arranging, or arrange for the owner, the release of surplus funds at any time; Prohibits a foreclosure consultant from taking any power of attorney from an owner for any purpose;
- Allows a homeowner to cancel a contract with a foreclosure consultant within five days after signing the contract, and to do so by mail, e-mail, or facsimile;
- Requires that a contract with a foreclosure consultant be written in the language of advertisement and negotiation; requires the foreclosure consultant to provide the owner, before the owner signs the contract, with one or more copies of a completed contract written in specified other languages;
- Requires a foreclosure consultant to register with the Department of Justice in accordance with certain requirements, and to obtain and maintain a surety bond of $100,000. A violation of these provisions would be a crime;
- Permits the Department of Justice to refuse to issue, or to revoke, a foreclosure consultant’s registration for any violation of the law regulating foreclosure consultants;
- Creates the Foreclosure Consultant Regulation Fund in the State Treasury for the deposit of fees submitted to the Department of Justice for registration as a foreclosure consultant, and available to the department upon appropriation by the Legislature for the costs of administering the registration program.
- Licensed attorneys are exempt from the definition of “foreclosure consultant” (see http://www.leginfo.ca.gov/pub/07-08/bill/asm/ab_0151-0200/ab_180_bill_20080925_chaptered.html for a copy of legislation passed in Sept.)
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