A foreclosure consultant is a professional who offers to help you solve your foreclosure problems. They can do this in a number of ways, including:
• Postpone or stop the foreclosure sale
• Obtain a forbearance for the homeowner, which is when the foreclosure counselor gets the owner’s mortgage payments postponed for a short period of time or payments are reduced
• Obtain an extension of time for the landlord to reinstate your mortgage, which means giving you time to pay the past-due amounts and bring your mortgage current.
• Obtain a waiver of an acceleration clause on your mortgage. This clause is what entitles the bank to demand immediate full payment right after the owner defaults on the mortgage.
• Helps the owner obtain an advance of funds or a loan to help pay the mortgage
• Helps the owner avoid seriously damaging their credit rating,
To become a foreclosure consultant, you must become a lawyer or apply for a government license. Professional requirements vary, but generally the government will require them to register with the attorney general or a justice department after they have met the training requirements. There are two types of license possible. If you want to become a foreclosure specialist for an established agency, you must have an associate’s license, also known as an agent’s license. If you want to be self-employed and have your own foreclosure consulting business, you will need a separate license.
The application process to obtain your license to become a foreclosure consultant involves:
• Receive pre-licensing training, which is approximately fifteen to twenty-five hours of in-person or online instruction as specified by local attorneys general.
• Payment of license fees
• Link up
• Submit a complete application that includes your background information, business details if starting your own foreclosure consulting business, and any other qualifications such as mortgage lending or real estate experience.
In some cases, you may also be required to take a licensing exam. Once you receive your license, you will need to register with your local government before you can start practicing as a financial consultant. Generally, licenses expire after twelve months, so you’ll need to complete continuing education and pay a fee to renew them. You will also need 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 transferred between lenders and homeowners. If you have an independent license, you will need to review the actions of any employee or associate every quarter. Those with an independent license must also obtain a bond for their services.