I was just reading Code 2945.4(e&f) and was hoping someone could explain some things to me:
2945.4. It shall be a violation for a foreclosure consultant to:
(e)Acquire any interest in a residence in foreclosure from an
owner with whom the foreclosure consultant has contracted.
(f)Take any power of attorney from an owner for any purpose,
except to inspect documents as provided by law.
-If a home owner just wants out, does this mean they cannot quit claim the property to me while I take on the payments subject to the existing mortgage?
-Also, is it illegal to take POA? I was under the impression that you want POA in these situations.
I’m in San Diego. That part of the civil code deals with people who take money in advance of providing services (loan bailout, stopping foreclosure, offering advice, etc.). The law is meant to define the line between service and buyer.
So, as long as you don’t fit the definition of a foreclosure consultant as stated in the civil code you’re fine. But…
You should also be very familiar with CC1695 dealing with buying while the owner is in foreclosure, CC890 dealing with rent skimming, and CC2924 which covers trustee’s sales.
Hi Kawika, thanks for responding…so basically as long as I don’t receive compensation for the services I provide (such as stopping foreclosure, making up back payments etc) I’m not considered a foreclosure consultant?
Do you often take on properties Subject to existing financing?
You can do those things if you own the property which you should before spending anytime on those tasks. Yes, subject-to is the best way to buy foreclosures in California. You should be confident that you have the cash to reinstate the loans which if you got a deal you should have no problem getting private money during the 5-day waiting period (in cases where you’re an equity purchaser).
There’s really only two scenarios; you’re an equity purchaser as defined in CC1695 in which case you get an equity purchase agreement signed and wait the 5-days (which you’re barred from recording documents, contacting lenders, giving the owner compensation, etc.) then take it subject-to or you’re not an equity purchaser in which case you can get a deed the day you meet the owner. In both cases you don’t really contact the lender or get financially involved until you have title.