1. A foreclosure consultant contract must be in writing and must fully disclose the exact nature of the foreclosure consultant‘s services and the total amount and terms of compensation.

Terms Used In Iowa Code 714E.2

  • Business day: means any calendar day except Saturday, Sunday, or a public holiday including a holiday observed on a Monday. See Iowa Code 714E.1
  • Contract: means an agreement, or a term in an agreement, between a foreclosure consultant and an owner for the rendition of a service. See Iowa Code 714E.1
  • Contract: A legal written agreement that becomes binding when signed.
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • 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 a solicitation, representation, or offer to an owner to perform for compensation or who, for compensation, performs a service which the person in any manner represents will do any of the following:
     (1) Stop or postpone a foreclosure, foreclosure sale, forfeiture, sheriff's sale, or tax sale. See Iowa Code 714E.1
  • 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.
  • Owner: means the record owner or holder of an equitable interest through contract of the residence in foreclosure at the time the notice of pendency was recorded, or at the time the default notice was served. See Iowa Code 714E.1
  • Signature: includes an electronic signature as defined in section 554D. See Iowa Code 4.1
 2. The following notice, printed in at least fourteen point boldface type and completed with the name of the foreclosure consultant, must be printed immediately above the notice of cancellation statement required pursuant to section 714E.3:

NOTICE REQUIRED BY IOWA LAW ………………………….. (name) or anyone working for ………………………….. (name) CANNOT:  (1) Take any money from you or ask you for money until …………………… (name) has completely finished doing everything …………………… (name) said …………………… (name) would do; and  (2) Ask you to sign or have you sign any lien, mortgage, or real estate contract.
 3. The contract must be written in the same language as principally used by the foreclosure consultant to describe the foreclosure consultant’s services and to negotiate the contract with the consumer. The contract must be dated and signed by the owner, and must contain in immediate proximity to the space reserved in the contract for the owner’s signature, a conspicuous statement in a size equal to at least ten point boldface 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 foreclosure consultant shall provide the owner immediately upon execution of the contract with a copy of the contract along with the notice of cancellation required in section 714E.3.
 5. The three business days during which the owner may cancel the contract shall not begin to run until the foreclosure consultant has complied with this section and with section 714E.3.