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California Civil Code Section 2945.1

Legal Research Home > California Laws > Civil Code > California Civil Code Section 2945.1

The following definitions apply to this chapter:
   (a) "Foreclosure consultant" means any person who makes any
solicitation, representation, or offer to any owner to perform for
compensation or who, for compensation, performs any service which the
person in any manner represents will in any manner do any of the
following:
   (1) Stop or postpone the foreclosure sale.
   (2) Obtain any forbearance from any beneficiary or mortgagee.
   (3) Assist the owner to exercise the right of reinstatement
provided in Section 2924c.
   (4) Obtain any extension of the period within which the owner may
reinstate his or her obligation.
   (5) Obtain any waiver of an acceleration clause contained in any
promissory note or contract secured by a deed of trust or mortgage on
a residence in foreclosure or contained that deed of trust or
mortgage.
   (6) Assist the owner to obtain a loan or advance of funds.
   (7) Avoid or ameliorate the impairment of the owner's credit
resulting from the recording of a notice of default or the conduct of
a foreclosure sale.
   (8) Save the owner's residence from foreclosure.
   (9) Assist the owner in obtaining from the beneficiary, mortgagee,
trustee under a power of sale, or counsel for the beneficiary,
mortgagee, or trustee, the remaining proceeds from the foreclosure
sale of the owner's residence.
   (b) A foreclosure consultant does not include any of the
following:
   (1) A person licensed to practice law in this state when the
person renders service in the course of his or her practice as an
attorney at law.
   (2) A person licensed under Division 3 (commencing with Section
12000) of the Financial Code when the person is acting as a prorater
as defined therein.
   (3) A person licensed under Part 1 (commencing with Section 10000)
of Division 4 of the Business and Professions Code when the person
is acting under the authority of that license, as described in
Section 10131 or 10131.1 of the Business and Professions Code.
   (4) A person licensed under Chapter 1 (commencing with Section
5000) of Division 3 of the Business and Professions Code when the
person is acting in any capacity for which the person is licensed
under those provisions.
   (5) A person or his or her authorized agent acting under the
express authority or written approval of the Department of Housing
and Urban Development or other department or agency of the United
States or this state to provide services.
   (6) A person who holds or is owed an obligation secured by a lien
on any residence in foreclosure when the person performs services in
connection with this obligation or lien.
   (7) Any person licensed to make loans pursuant to Division 9
(commencing with Section 22000) of the Financial Code when the person
is acting under the authority of that license.
   (8) Any person or entity doing business under any law of this
state, or of the United States relating to banks, trust companies,
savings and loan associations, industrial loan companies, pension
trusts, credit unions, insurance companies, or any person or entity
authorized under the laws of this state to conduct a title or escrow
business, or a mortgagee which is a United States Department of
Housing and Urban Development approved mortgagee and any subsidiary
or affiliate of the above, and any agent or employee of the above
while engaged in the business of these persons or entities.
   (9) A person licensed as a residential mortgage lender or servicer
pursuant to Division 20 (commencing with Section 50000) of the
Financial Code, when acting under the authority of that license.
   (c) Notwithstanding subdivision (b), any person who provides
services pursuant to paragraph (9) of subdivision (a) is a
foreclosure consultant unless he or she is the owner's attorney.
   (d) "Person" means any individual, partnership, corporation,
limited liability company, association or other group, however
organized.
   (e) "Service" means and includes, but is not limited to, any of
the following:
   (1) Debt, budget, or financial counseling of any type.
   (2) Receiving money for the purpose of distributing it to
creditors in payment or partial payment of any obligation secured by
a lien on a residence in foreclosure.
   (3) Contacting creditors on behalf of an owner of a residence in
foreclosure.
   (4) Arranging or attempting to arrange for an extension of the
period within which the owner of a residence in foreclosure may cure
his or her default and reinstate his or her obligation pursuant to
Section 2924c.
   (5) Arranging or attempting to arrange for any delay or
postponement of the time of sale of the residence in foreclosure.
   (6) Advising the filing of any document or assisting in any manner
in the preparation of any document for filing with any bankruptcy
court.
   (7) Giving any advice, explanation, or instruction to an owner of
a residence in foreclosure which in any manner relates to the cure of
a default in or the reinstatement of an obligation secured by a lien
on the residence in foreclosure, the full satisfaction of that
obligation, or the postponement or avoidance of a sale of a residence
in foreclosure pursuant to a power of sale contained in any deed of
trust.
   (8) Arranging or attempting to arrange for the payment by the
beneficiary, mortgagee, trustee under a power of sale, or counsel for
the beneficiary, mortgagee, or trustee, of the remaining proceeds to
which the owner is entitled from a foreclosure sale of the owner's
residence in foreclosure. Arranging or attempting to arrange for the
payment shall include any arrangement where the owner transfers or
assigns the right to the remaining proceeds of a foreclosure sale to
the foreclosure consultant or any person designated by the
foreclosure consultant, whether that transfer is effected by
agreement, assignment, deed, power of attorney, or assignment of
claim.
   (9) Arranging or attempting to arrange an audit of any obligation
secured by a lien on a residence in foreclosure.
   (f) "Residence in foreclosure" means a residence in foreclosure as
defined in Section 1695.1.
   (g) "Owner" means a property owner as defined in Section 1695.1.
   (h) "Contract" means any agreement, or any term thereof, between a
foreclosure consultant and an owner for the rendition of any service
as defined in subdivision (e).

Last modified: February 13, 2012