A foreclosure consultant is a professional that offers to help you resolve your foreclosure problems. They can do this in several ways, which include:
• Postponing or stopping the foreclosure sale
• Getting the homeowner a forbearance, which is when the foreclosure consultant gets the homeowners mortgage payments postponed for a short period of time or getting the payments lowered
• Getting the homeowner an extension of time to reinstate their mortgage, which involves giving them time to pay off past due amounts and bring their mortgage current.
• Getting a waiver of an acceleration clause in their mortgage. This clause is what gives the bank the right to demand in full the immediate payment right after the homeowner defaults on the mortgage
• Helps the homeowner get an advance of funds or a loan to help pay on the mortgage
• Helps the homeowner avoid seriously hurting their credit rating,
To become a foreclosure consultant you have to become an attorney or apply for a government license. The professional requirements vary, but generally the government will require that they register with the attorney general or a department of justice after they have fulfilled the training requirements. There are two possible license types. If you want to become a foreclosure specialist for an established agency you would have to have an associate’s license, also known as an agent’s license. If you want to be self-employed and have your own foreclosure consultancy business you would need an independent license.
The application process to get your license to become a foreclosure consultant involves:
• Undergoing pre-licensed training, which is about fifteen to twenty-five hours of in-person or online instruction that is specified by the local attorney general.
• Paying licensing fees
• Becoming bonded
• Submitting a completed application that includes your background information, business details if starting your own foreclosure consultancy business, and any other qualifications like experience in mortgage lending or real estate.
In some cases you may also have to take a licensing exam. Once you receive your license you will need to register with the local government before you can start practicing as a financial consultant. Generally the licenses expire after twelve months so you will have to complete continuing education and pay a fee to have them renewed. You will also have to submit a financial statement prepared by a certified accountant to the government. The foreclosure consultant will also need to set up a trust account to hold any money that is being transferred between the lenders and homeowners. If you have an independent license you will have to review the actions of any employees or associates each quarter. Those with an independent license must also obtain a bond for their services.