New Mexico Statutes 47-15-3. Foreclosure consultant contract; requirements
A. A foreclosure consulting contract shall:
Terms Used In New Mexico Statutes 47-15-3
- 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.
- 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.
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
(1) be provided to the owner for review at least twenty-four hours before being signed by the owner;
(2) be printed in at least fourteen-point type and written in the same language that was used by the owner in discussions with the foreclosure consultant to describe the consultant’s services or to negotiate the contract;
(3) fully disclose the nature and extent of the foreclosure consulting services to be provided, including any foreclosure reconveyance that may be involved, and the total amount and terms of any compensation to be received by the foreclosure consultant or anyone working in association with the foreclosure consultant;
(4) disclose the names of any other corporations, businesses or entities on behalf of which the consultant does business or with which the consultant is affiliated or employed;
(5) separately itemize all costs, fees or expenses and the purpose of the costs, fees or expenses that are charged to the homeowner during the term of the contract;
(6) be dated and personally signed by the owner and the foreclosure consultant; and
(7) contain the following notice, which shall be printed in at least fourteen- point boldface type, completed with the name of the foreclosure consultant, and located in immediate proximity to the space reserved for the owner’s signature:
“NOTICE REQUIRED BY NEW MEXICO LAW ………. (Name) or anyone working for him or her CANNOT ask you to sign or have you sign any lien, mortgage or deed as part of signing this agreement unless the terms of the transfer are specified in this document and you are given a separate explanation of the nature and extent of the transaction.
………. (Name) or anyone working for him or her CANNOT guarantee you that they will be able to refinance your home or arrange for you to keep your home. Continue making mortgage payments until a refinancing, if applicable, is approved. If a transfer of the deed or title to your property is involved in any way, you may rescind the transfer any time within 3 days after the date you sign the deed or other document of sale or
transfer. See the attached Notice of Rescission form for an explanation of this right. As part of any rescission, you must repay any money spent on your behalf as a result of this agreement within 60 days of receiving commercially reasonable documentation of the payments.
THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE LOSS OF YOUR HOME. CONTACT AN ATTORNEY OR COUNSELOR BEFORE SIGNING.” B. A foreclosure consulting contract shall contain on the first page, in at least fourteen-point type:
(1) the name and address of the foreclosure consultant to which the notice of cancellation is to be mailed; and
(2) the date the owner signed the contract.
C. A foreclosure consulting contract shall be accompanied by a completed form in duplicate, captioned “NOTICE OF RESCISSION RIGHTS”, which shall:
(1) be on a separate sheet of paper attached to the contract; (2) be easily detachable; and
(3) contain the following statement printed in at least fifteen-point type:
“NOTICE OF RESCISSION RIGHTS (Date of Contract) You may cancel or rescind this contract, without any penalty, at any time until midnight of the third business day after the day on which you sign this contract. If you want to end this contract, mail or deliver a signed and dated copy of this Notice of Rescission, or any other written notice indicating your intent to rescind to (name of foreclosure consultant) at (address of foreclosure consultant, including facsimile and electronic mail).
As part of any rescission, you (the homeowner) must repay any money spent on your behalf as a result of this agreement within 60 days of receiving commercially reasonable documentation of the payments.
THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE LOSS OF YOUR HOME. CONTACT AN ATTORNEY OR COUNSELOR BEFORE SIGNING.
RESCISSION OF CONTRACT FORM TO: (name of foreclosure consultant) (address of foreclosure consultant, including facsimile and electronic mail) I hereby rescind this contract.
………. (Date) ………. (Homeowner’s signature)”.
D. The foreclosure consultant shall provide the owner with a signed and dated copy of the foreclosure consulting contract and the attached notice of rescission rights and rescission of contract form immediately upon execution of the contract.
E. The time during which the owner may rescind the foreclosure consulting contract does not begin to run until the foreclosure consultant has complied with this section and the owner has signed the contract.