License & Permit
Foreclosure Consultant Bond
A foreclosure consultant bond is a license bond California requires from businesses that offer, for a fee, to help homeowners stop or delay a foreclosure.
- Required by
- State of California (registration with the Attorney General)
- Bond amount
- $100,000 (California Civil Code 2945.45)
What this bond guarantees
The bond is made in favor of the State of California for the benefit of homeowners. It promises the consultant will follow the foreclosure consultant law. A homeowner damaged by the consultant's violations can make a claim.
Who needs it
- Foreclosure consultants registered in California
- Foreclosure rescue and loan modification services that fall under the law
What the underwriter looks at
- Owners' credit
- Financial statements
- Complaint history
- Collateral, since many sureties treat this as high risk
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Who does the bond protect?
Homeowners. It is for the benefit of homeowners damaged by the consultant's violations of California's foreclosure consultant laws.
Do other states require it?
Some states regulate or ban foreclosure consultant fees in other ways. Check the state where the property is located.