In regards to the definition of a "foreclosure consultant" under CA law.

General Real Estate Investing
1

I posted this in another section but it probably is more appropriate for this sub-forum as it is a legal issue and was hoping that somebody that knows the law or has experience with this could chime in. There are strict guidelines under CA law in regards to what a “foreclosure consultant” can and cannot do; failure to comply can result in jail time and fines. It seems to me that under the code a wholesaler could be considered as a “foreclosure consultant”. A “foreclosure consultant” is partially defined as someone who 1) offers to save an owner’s home from foreclosure and
2) receives compensation from such offer

Legally could the compensation be construed as the right to buy the house in the form of the contract the wholesaler signs with the seller? If anybody can elucidate where I am going wrong here and if CA courts do or do not consider wholesalers as “foreclosure consultants” I would greatly appreciate it.

2

These laws are aimed at investors who tell homeowners they can save the house and allow them to remain living in it when the reality is they have no intention of doing so.

3

I understand that the law was written with the intention of preventing fraud against homeowners in distress; however it seems that the language of the law as written could also apply to investors performing as “wholesalers”. If so, it would mean that wholesalers would be required to fully disclose any compensation they are receiving for their services; failure to comply could result in jail time. I’m hoping someone can clarify if a wholesaler is viewed as a foreclosure consultant in the eyes of CA courts.