Arizona Laws 44-1378.02. Prohibited acts
A foreclosure consultant shall not:
Terms Used In Arizona Laws 44-1378.02
- Covered service: includes :
(a) Financial counseling, including debt counseling and budget counseling to assist a homeowner in connection with the homeowner's residence in foreclosure. See Arizona Laws 44-1378
- 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
- Foreclosure consultant: means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation or who, for compensation, performs any covered service that the person represents will do any of the following:
(a) Prevent or postpone a foreclosure sale. See Arizona Laws 44-1378
- Homeowner: means the record owner of a residence in foreclosure at the time the notice of the pendency of an action for foreclosure or the recording of a notice of sale pursuant to section 33-808. See Arizona Laws 44-1378
- interest in the residence: includes an interest in a contract for a deed, a purchase agreement and an option to purchase or lease. See Arizona Laws 44-1378
- Lien: A claim against real or personal property in satisfaction of a debt.
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Residence in foreclosure: means residential real property consisting of not more than four family dwelling units, one of which the homeowner occupies as a principal place of residence, and against which there is recorded an outstanding notice of the pendency of an action for foreclosure or notice of sale pursuant to section 33-808. See Arizona Laws 44-1378
1. Claim, demand, charge, collect or receive any compensation until after the foreclosure consultant has fully performed each covered service that the foreclosure consultant contracted to perform or represented that the foreclosure consultant would perform.
2. Claim, demand, charge, collect or receive any fee, interest or other compensation for any reason that is not fully disclosed to the homeowner.
3. Take any wage assignment, lien on real or personal property, assignment of a homeowner’s equity or other interest in a residence in foreclosure or other security for the payment of compensation.
4. Receive any consideration from any third party in connection with a covered service provided to a homeowner unless the consideration is first fully disclosed to the homeowner.
5. Acquire, directly or indirectly, any interest in the residence in foreclosure of a homeowner with whom the foreclosure consultant has contracted to perform a covered service.
6. Accept a power of attorney from a homeowner for any purpose, other than to inspect documents as provided by law.