California Foreclosure Consultant Laws for Owner Financing

[Matthew Nelson]

Please only California investors or those with specific knowledge of California laws answer:

I have been researching what requirements and laws that exist in California surrounding purchasing homes from owners in "pre-foreclosure." Are there specific licensing requirements for purchasing homes from these individuals? I came across this: https://leginfo.legislature.ca.gov/faces/codes_dis...

I have no law experience, but it sounds to me like there is some kind of Foreclosure Consultant License that you must obtain before engaging directly with any sellers in foreclosure in California. I am not at all planning to facilitates any transactions without an attorney, but when it comes to initially reaching out to these owners via the appropriate "advertising" and communicating with them during negotiations and initial meetings I want to make sure I am not violating any laws.

What licenses would I need to obtain in order to find "pre-foreclosure" deals in California that include both full-cash payments and owner financing? Assuming an attorney would handle the transaction.

[Jay Hinrichs]

Originally posted by @Brett Goldsmith:

Loss mitigation services: Short Sale, Deed in Lieu, Loan Modification, Mortgage Settlements, are forms of helping if borrower is eligible. Helping can be in the form of consulting, facilitating, referring, structuring a deal, etc. 

Structuring a deal is helping so it needs to be done with care and caution for all parties.

You can always have things go sideways even when you have the best intentions and do everything by the book. The goal is to mitigate this by doing business with the right people and by creating win-win's. 

I don't believe you need a license to structure, people get in trouble with WHO and HOW they structure deals.

BTW I've never met or even seen anyone who was a "licensed foreclosure consultant", I believe that being a broker or an attorney are exemptions for certain work out options.

The laws are here to protect homeowners in distress from being preyed upon as many people go around blowing smoke up these homeowners backsides and charging them an arm and an leg to do absolute nothing. Other people go around trying to literally steal people's equity through deceitful promises and paperwork. 

Best of luck and reach out to me if you ever want assistance in finding solutions for homeowners in tough spots.

now I know he said CA... but OR and WA has the same laws.. mortgage originator is exempt as well.. 

the rub is taking advantage of people when they are down.. that's the bottom line.. telling them that your going help them when their credit is already gone .. and then taking their equity.. mainly sub too rent back is what is really frowned upon.. I use to do a ton of it.

But just straight up cash purchase I think is still OK.. in Oregon if you purchase and resell with in a certain amount of time like 18 to 24 months 80% of your profit must go back to the old owner.. I know I know..