Although this is not new, it’s the subject of many scams and stubborn misunderstanding in society. This post should be read in conjunction with a related post “Mortgage Modifications – No Advanced Fees, Mandatory Disclosures”
California Law strictly limits the activities and charges of a Foreclosure Consultant.
Foreclosure Consultant – California Civil Code section 2945(a) defines “foreclosure consultant” as any person (excludes lawyers) who performs for compensation certain services for a homeowner or makes any solicitation, representation, or offer to do so. The services include: stopping or postponing a foreclosure sale, obtaining forbearance from any beneficiary or mortgagee, obtaining reinstatement of a loan obligation, obtaining an extension for reinstating a loan obligation, obtaining a waiver of an acceleration clause, assisting the owner in getting a loan, and saving the owner’s residence from foreclosure.
Protections and Disclosures – California Civil Code Section 2945 imposes numerous restrictions on foreclosure consultants. For example, agreements with foreclosure consultants must be in writing and contain specific disclosures. Also, foreclosure consultants are prohibited from collecting a fee for any services until after the services have been fully performed. In addition, distressed homeowners have a right in certain circumstances to cancel foreclosure consultant agreements. These protections cannot be waived which means nothing in a contract can eliminate or waive these requirements.
At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch, and Hercules.