Homeowners can receive money to vacate their foreclosed home.
Become a foreclosure consultant by applying for a government license or becoming a lawyer. Professional requirements vary around the world, but most governments require foreclosure consultants to register with a department of justice or attorney general after passing training requirements. In the United States, most states have enacted laws requiring any specialist who advises families at risk of losing their homes to foreclosure to obtain a special foreclosure consultant license from the local attorney general. Attorneys with a valid license to practice law are normally exempt.
Foreclosure consultants must be licensed by the government or a practicing attorney.
There are two possible types of licenses. A person who wants to become a foreclosure consultant for an established agency will need to obtain an associate’s license, also known as an agent’s license. Someone who wants to set up their own foreclosure consulting business or sole proprietorship needs a separate license.
The application process required to become a foreclosure consultant includes receiving pre-licensing training, bonding, and paying license fees. It also includes submitting a completed form that includes business details, history, and any other qualifications such as real estate or home loan experience. A licensing exam is often required. After receiving a license, the foreclosure consultant would register with the local government and start practicing. Licenses typically expire after one year and must be renewed for an annual fee, usually upon completion of continuing education.
Foreclosure consultants often go through a time-consuming rainy-day process.
Pre-licensing education includes approximately 15-25 hours of online or face-to-face instruction, as specified by local attorneys general. Typically, 15% of the training covers professional ethics, as some consumer groups have accused foreclosure consultants in the past of taking advantage and defrauding families. Most governments have therefore taken steps to ensure consultants are trained to be fair and protect the interests of owners. Approximately 30 percent of pre-licensing training addresses mortgage lending laws at all levels of government. This study area includes a review of any special national programs designed to help homeowners at risk of foreclosure.
The remaining classes focus specifically on the regulations and requirements in the local neighborhood where the candidate would practice if successful in their quest to become a foreclosure consultant. Special emphasis is placed on taxes, interest, and other ways homeowners may be financially affected by foreclosure itself or solutions to avoid foreclosure. If not completed prior to completing an application to become a foreclosure consultant, all classes generally must be completed within three months of application.
Other requirements to become a foreclosure consultant include submitting an annual financial statement prepared by a certified accountant to the government and creating a trust account to hold any money that is transferred between clients and lenders. Those with independent foreclosure consultant licenses are generally required to review the actions of associates and employees on a quarterly basis. Independent licensees must also obtain a guarantee for their services in amounts that generally range from $75,000 to $100,000 United States Dollars (USD).
Many applicants find that becoming a foreclosure consultant can be a rewarding way to help society, as these professionals counsel families in financial trouble. A foreclosure consultant’s job description includes duties such as helping families stop or delay foreclosure proceedings, as well as reducing the impact of a foreclosure on a client’s credit report. Foreclosure counselors also broker agreements between homeowners and banks, saving all the money to pay it off in a trust account. If homeowners default, a consultant can also help reverse the default and seek new loans.
Governments often prohibit foreclosure consultants from handling clients’ loan modifications and bankruptcy filings. Consultants also may not acquire ownership, even partially, of foreclosed properties. Foreclosure consultants are also generally prohibited from acting as financial management consultants.