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FORECLOSURE CONSULTANTS – REGISTRATION, BOND REQUIRED
AB 180, Civil Code 1632, 2945.2, 2945.3, 2945.4, 2945.45
Effective July 1, 2009
This law establishes a registration and bonding process for foreclosure consultants, and bars them from entering into certain agreements with homeowners.
Previously, the law required foreclosure consultants to wait at least 65 days after a trustee’s sale before signing a contract with the homeowner to get surplus funds from the sale. This new law prohibits foreclosure consultants from ever entering into this type of contract with homeowners.
The law used to allow homeowners to cancel a contract with a foreclosure consultant within 3 days by mailing a written cancellation notice to the address provided by the foreclosure consultant. This new law gives homeowners 5 days to cancel, and they can send their cancellation notice by mail, e-mail, or fax.
This law also requires foreclosure consultant to:
- Give homeowners a copy of the contract in the language used by the foreclosure consultant to describe the services or negotiate the contract
- Not take a power of attorney from a homeowner for any purpose
- Register with the Department of Justice
- Get a $100,000 bond
For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov