- Nebraska regulates foreclosure consultants under its Nebraska Foreclosure Protection Act, (see http://uniweb.legislature.ne.gov/FloorDocs/Current/PDF/Final/LB123.pdf)
- The State:
- Requires foreclosure consulting contracts to be in writing and given to homeowner for review for 24 hours before signing; pro forma type and notice of parties to contract, contact information, notices of cancellation attached, fully disclose the rights, responsibilities, and prohibitions of the parties; and shall be dated and signed in front of a notary
- Allows cancellation at any time with written notice
- Prohibits that a right to cancel be conditioned on any funds; Prohibits up front fees, fees in excess of prime rate +2 percentage points; security to secure payment of compensation; foreclosure consultant taking interest in the property at issue; foreclosure consultant taking power of attorney from homeowner; “facilitating anything unconscionable”;
- Voids contract clauses waiving rights, setting jurisdiction outside thePage 14 of 14 State or venue outside of the location of the contract,
- Allows a court to refuse to enforce the contract where it has found any clause void
- Requires that any violation of the Nebraska Foreclosure Protection Act serve as basis for a violation the Nebraska Deceptive Trade Act
- Makes violation of Nebraska Foreclosure Protection Act a Class IV felony.
- Attorneys acting on behalf of their clients are excluded from the definition of foreclosure consultant
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