Foreclosure Scams and the Foreclosure Consultant Law

Copyright© 2008 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Legal Department

TABLE OF CONTENTS
I. Introduction
II. Foreclosure-Related Scams (Questions 1 to 11)
III. Foreclosure Consultant Law
A. General Overview of the Foreclosure Consultant Law (Questions 12 to 16)
B. Applicability of the Foreclosure Consultant Law (Questions 17 to 30)
C. Requirements of the Foreclosure Consultant Law (Questions 31 to 47)
IV. Additional Information (Questions 48 to 50)


I. INTRODUCTION

REALTORS® commonly consider the filing of a notice of default as the beginning of the foreclosure process. However, it may also be the start of something sinister. The public recording of a notice of default can act as a beacon to unscrupulous people who, under the guise of offering assistance, seek to take advantage of homeowners in distress. To protect homeowners in foreclosure, California’s foreclosure consultant law strictly regulates the activities of people who perform foreclosure-related services, including real estate agents to a limited extent.

This legal article discusses the issues surrounding foreclosure-related scams, with special attention given to the ways that REALTORS® and their clients can distinguish between legitimate and illegal enterprises. This article also provides REALTORS® with legal and practical guidelines for complying with the foreclosure consultant law.

FULL STORY