The Mortgage Foreclosure Consultants Act

I spoke at a real estate seminar yesterday. Intelligent group of people asked some great questions. Two of the main issues we discussed were short sales and foreclosures. Much of the discussion centered around two California acts which regulate the practice of assisting distressed owners. One of the acts is known as the Mortgage Foreclosure Consultants Act. I've linked to the language of that act for anyone who wants to read it. A couple of things of note: the act requires a three-day cancellation period; and the act restricts the lender's ability to take an "interest" in the title of the property. The act does have some teeth, meaning it has some penalty provisions for violating the act. See 2945.4 for a list of violations. It should be taken seriously by professionals who make a living helping homeowners.