A foreclosure consultant is someone hired to help a homeowner who is losing their home to foreclosure. This law lists things that kind of consultant is not allowed to do — like charging money before finishing the job, charging more than 10% interest on any loan they give the owner, taking a lien on the owner's property as collateral, getting secret payments from other people, taking ownership of the home they were hired to help save, taking over legal decision-making power for the owner, or tricking the owner into signing a bad contract. Breaking any of these rules is a class A misdemeanor, which is a criminal offense.
Classifications stated in the statute. Actual outcomes vary.
407.940. s, acts — . — 1. It shall be unlawful for a foreclosure consultant to :
(1) , , charge, collect, or receive any until after the foreclosure consultant has fully performed each and every the foreclosure consultant to perform or represented he would perform;
(2) Claim, demand, charge, collect, or receive any fee, interest, or any other compensation for any reason which exceeds ten percent of the amount of any loan which the foreclosure consultant may make to the owner;
(3) Take any , any of any type on , or other to secure the payment of compensation. Any such security shall be ;
(4) Receive any from any in connection with services rendered to an owner unless such consideration is fully disclosed to the owner;
(5) Acquire any interest in a from an owner with whom the foreclosure consultant has contracted. Any interest acquired in violation of this shall be , provided that nothing herein shall affect or defeat the of a or for value and without notice of a violation of this section. Knowledge that the property was a "residence in foreclosure" shall not constitute notice of a violation of this section. This subdivision shall not be to any duty of inquiry which exists as to rights or interests of persons in of a residence in foreclosure;
(6) Take any from an owner for any purpose, except to inspect documents as provided by law;
(7) Induce or attempt to induce any owner to enter a contract which does not comply in all respects with sections 407.935 and 407.937.
2. Any violation of any of the acts enumerated in 1 of this section shall be a .
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Source & history notes
(L. 1992 S.B. 705 § 5)
Related Missouri laws
Waiver, void
RSMo 407.941
Contract, form of
RSMo 407.938
Right to cancel contract
RSMo 407.937
Action against foreclosure consultant authorized
RSMo 407.943
Definitions
RSMo 407.935
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RSMo 407.934
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.