- Maryland strictly regulates foreclosure consultants under its Protection of Homeowners in Foreclosure Act. Section 7-301 of the Real Property Act (see http://mlis.state.md.us/2008rs/chapters_noln/Ch_6_hb0361T.pdf)
- The State:
- Allows property owner to cancel the contract at anytime prior to full performance with written (email or fax) notice
- Requires homeowner to pay within 60 days any funds advanced on hisbehalf.
- Requires contracts in writing, in the same language as negotiation, with full disclosure of rights and duties of both parties and the terms of the contract and state law, with the property owner’s signature before a notary
- Prohibits a foreclosure consultant from soliciting, participating, etc. in a foreclosure rescue transaction; Prohibits up front fees; Prohibits compensation greater than 8% the value of the loan; Prohibits foreclosure consultant from taking security interest in the property; Prohibits foreclosure consultant from receiving consideration from interested 3rd parties without full disclosure of the consideration; Prohibits consultants from taking power of attorney
- Assigns a duty to consultant to provide property owner with written copies of foreclosure consultant’s research including comparable sales in are; Assigns the same duty of care to property owner as a real estate broker owes to a client
- Provides for civil and criminal penalties
- Licensed attorneys are exempt from the definition of foreclosure consultants.
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