Apply for a government license or become an attorney to work as a foreclosure consultant. Professional requirements differ from country to country, but most governments require foreclosure consultants to register with a department of justice or attorney general after completing training. Most states in the United States have passed legislation requiring any expert advising families facing foreclosure to obtain a special foreclosure consultant’s license from their local attorney general’s office. Lawyers who hold a current law license are usually exempt.
There are two types of licenses that can be obtained. An associate’s license, also known as an agent’s license, is required for someone who wants to work as a foreclosure consultant for a reputable firm. An independent license is required for anyone who wants to start their own foreclosure consulting business or sole proprietorship.
Pre-licensing training, bonding, and payment of licensing fees are all part of the application process for becoming a foreclosure consultant. It also entails submitting a completed application that includes information about your company, your background, and any other qualifications you may have, such as real estate or mortgage lending experience. A licensing exam is frequently required. The foreclosure consultant would then register with a local government and begin practicing after receiving a license. Licenses usually expire after a year and must be renewed annually for a fee, usually after completing continuing education.
According to local attorneys general, pre-licensing education consists of 15 to 25 hours of online or in-person instruction. Professional ethics is usually covered in 15% of training, as some consumer groups have accused foreclosure consultants of preying on families and defrauding them in the past. As a result, most governments have taken steps to ensure that consultants are trained in how to be fair and protect homeowners’ interests. Mortgage lending laws at all levels of government account for roughly 30% of pre-licensing training. This area of research includes an examination of any special national programs aimed at assisting homeowners facing foreclosure.
The remaining classes are focused on local regulations and requirements in the applicant’s area of practice if they are successful in their quest to become a foreclosure consultant. Taxes, interest, and other financial issues that homeowners may face as a result of foreclosure or alternatives to foreclosure are given special attention. All classes must be completed within three months of filing an application to become a foreclosure consultant if they were not completed prior to filing.
Other requirements for becoming a foreclosure consultant include submitting an annual financial statement to the government prepared by a certified accountant and opening a trust account to hold any funds transferred between clients and lenders. Those who hold independent foreclosure consultant licenses are required to review the actions of their associates and employees on a quarterly basis. Independent licensees are also required to obtain a bond for their services, which typically ranges from $75,000 to $100,000 US Dollars (USD).
Many aspirants believe that working as a foreclosure consultant can be a rewarding way to give back to society by assisting families who are facing financial difficulties. A foreclosure consultant’s responsibilities include assisting families in halting or delaying foreclosure proceedings, as well as minimizing the impact of a foreclosure on a client’s credit report. Foreclosure consultants also work with homeowners and banks to reach agreements, saving any money owed to them in a trust account. A consultant can also assist homeowners who have defaulted on loans in reversing defaults and finding new loans.
Governments frequently prohibit foreclosure consultants from assisting clients with loan modifications and bankruptcy filings. Consultants are also unable to acquire ownership of foreclosed real estate, even in part. Financial management counselors are typically prohibited from acting as foreclosure consultants.