California Foreclosure Consultant?

[Christopher W.]

I have a question about the July 2009 law regarding California Foreclosure Consultants. If we are talking to homeowners and negotiating a short sale for them, does this law apply to us?

I read the law and the only thing I can think of is that the law specifically states "perform for compensation". If we are not charging the homeowner any fees, then this should not apply, right? It seems like this law was written for people doing loan mods.

Just wondering what other Cali short sellers are doing out there!

[Moe M.]

Like Will said this doesn't seem to apply to investors (again no legal advice here). This actually isn't new, I remember dealing with this in 2007.

Keep in mind that you are not negotiating a short sale for "them" like you stated, we are negotiating a short sale for ourselves as principal buyers. I think it's different if you're negotiating as a consultant for a fee and charging up front. I'm in Cali and haven't had any problems from an investor stand-point, nor heard of anyone else having any issues. Also I'm BIG on disclosures: everything from the contract, whether it's an option contract or purchase agreement, affidavit, short sale package, etc -- I am making it perfectly clear my intention of buying their property and trying to negotiate the best price so I can profit and that there are no guarantees that it will get approved or that it will save them from foreclosure. Some of these documents are notarized spelling this out.

Though I absolutely heard of non-attorney firms getting shut down for charging fees.

Anyone else out there hearing of investors having issues with this statute specifically when it comes to purchasing short sales?

Moe