1. Every contract shall be in writing and shall fully disclose the exact nature of the foreclosure consultant’s services and the total amount and terms of compensation.

2. The following notice, printed in at least fourteen-point boldface type and completed with the name of the foreclosure consultant, shall be printed immediately above the statement required by subsection 3 of this section:

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NOTICE REQUIRED BY MISSOURI LAW
______ (Enter name of foreclosure consultant) or anyone working for him or her cannot:
(1) Take any money from you or ask you for money until ______ (Enter name of foreclosure consultant) has completely finished doing everything he or she said he or she would do; and
(2) Ask you to sign or have you sign any lien, mortgage, deed of trust, or deed.

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Terms Used In Missouri Laws 407.938

  • Contract: A legal written agreement that becomes binding when signed.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

3. The contract shall be written in the same language as principally used by the foreclosure consultant to describe his services or to negotiate the contract, shall be dated and signed by the owner, and shall contain in immediate proximity to the space reserved for the owner’s signature a conspicuous statement in a size equal to at least ten-point bold type, as follows:

You, the owner, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.

4. The contract shall contain on the first page, in a type size no smaller than that generally used in the body of the document, each of the following:

(1) The name and address of the foreclosure consultant to which the notice or cancellation is to be mailed;

(2) The date the owner signed the contract.

5. The contract shall be accompanied by a completed form in duplicate, captioned “notice of cancellation”, which shall be attached to the contract, shall be easily detachable, and shall contain in type of at least ten-point the following statement written in the same language as used in the contract:

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NOTICE OF CANCELLATION
______ (Enter date of transaction.) ______ (Date)
You may cancel this transaction, without any penalty or obligation, within three business days from the above date. To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to ______ (Enter name of foreclosure consultant) at ______ (Enter address of foreclosure consultant’s place of business) NOT LATER THAN MIDNIGHT OF ______ (Enter date) I hereby cancel this transaction on ______ (Date) ______ (Owner’s signature)

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6. The foreclosure consultant shall provide the owner with a copy of the contract and the attached notice of cancellation.

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