Am I a CA Foreclosure Consultant? - Posted by JohnWe (NoCa)

import · February 16, 2001, 6:30pm

Posted by JohnWe (NoCA) on February 16, 2001 at 22:18:04:

nt

import · February 16, 2001, 6:30pm

Posted by JohnWe (NoCa) on February 16, 2001 at 19:30:55:

Hi,

Here we go again with the CA Foreclosure laws. Here’s the situation…

If somebody else finds people that are in foreclosure, then comes to me to play the lender – I would loan the foreclosuree some dough to bring him out of foreclosure, and record a 2nd or 3rd on his house – does that make me a foreclosure consultant according to the California Code? If that makes him a foreclosure consultant, is there anyway I could be held liable for his actions?

BTW, I’m not licensed to lend money, but I wouldn’t charge more than 10% interest. I would however, charge points and late fees if necessary.

Thanks for your help!

import · February 17, 2001, 12:56am

I think you are in for… - Posted by Jim Pasquini

Posted by Jim Pasquini on February 17, 2001 at 01:56:59:

trouble on so many fronts by doing this. Since you aren’t licensed as a mortgage lender that certainly puts you in consideration for classification as a foreclosure consultant. Your only chance here is you aren’t directly charging a fee for your services. Your more certain trouble will follow for being an unlicensed residential lender, and dealing within many of the changes with respect to predatory lending, etc.

If someone is bringing the client to you they certainly are a foreclosure consultant. He certainly could be classified as your representative and inure liability to you for his actions.

I think even if still skirting the law on the side of good when you factor the points in they may call calculate an imputed interest rate and that would send you over the top. Don’t know, but I’ve got to believe if there is an opportunity the courts will side with the homeowner.

Man, when you get done reading 1695 and 2945 of the California Civil Code the first thought that comes to mind is “Sorry Mr. Defaulting Homeowner. My intentions may be genuine and I’d like to do something for you, but the whole one year in jail and $10,000 fine along with some serious damage clauses plus up to four years for an attorney to get ahold of Mr. Default to convince him I wronged him makes me think you are going to have to work this one out by yourself. Where is the newspaper ad? I gotta call some FSBO’s.”

import · February 16, 2001, 9:17pm

Check your mortgage banking laws… - Posted by Ben (NJ)

Posted by Ben (NJ) on February 16, 2001 at 22:17:15:

according to state law you may be able to originate 2 or 3 loans without a mortgage banking license. It’s not the interest rate that matters but the frequency
of loans.

import · February 16, 2001, 6:55pm

Re: Am I a CA Foreclosure Consultant? - Posted by JPiper

Posted by JPiper on February 16, 2001 at 19:55:50:

My opinion is that you would fall under the mortgage consultants law, foreclosure consultants law, and perhaps other laws. Go to findlaw.com, click on California, and then do a search for the mortgage consultants law. If you are still in doubt check with an attorney. This is a VERY serious area in California…you need to be SURE of your position if you’re not.

JPiper

import · February 16, 2001, 9:20pm

Re: It’s not the license that worrys me - Posted by JohnWe (NoCA)

Posted by JohnWe (NoCA) on February 16, 2001 at 22:20:05:

Thanks for the info.

Actually, it’s not so much the license that worrys me, as the fact that I may be considered a foreclosure consultant.