Section 407.940

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 1992   

  407.940.  Foreclosure consultants, unlawful acts — penalty. — 1.  It shall be unlawful for a foreclosure consultant to knowingly:

  (1)  Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented he would perform;

  (2)  Claim, demand, charge, collect, or receive any fee, interest, or any other compensation for any reason which exceeds ten percent per annum of the amount of any loan which the foreclosure consultant may make to the owner;

  (3)  Take any wage assignment, any lien of any type on real or personal property, or other security to secure the payment of compensation.  Any such security shall be void and unenforceable;

  (4)  Receive any consideration from any third party in connection with services rendered to an owner unless such consideration is fully disclosed to the owner;

  (5)  Acquire any interest in a residence in foreclosure from an owner with whom the foreclosure consultant has contracted.  Any interest acquired in violation of this subdivision shall be voidable, provided that nothing herein shall affect or defeat the title of a bona fide purchaser or encumberer for value and without notice of a violation of this section.  Knowledge that the property was a "residence in foreclosure" shall not constitute notice of a violation of this section.  This subdivision shall not be deemed to abrogate any duty of inquiry which exists as to rights or interests of persons in possession of a residence in foreclosure;

  (6)  Take any power of attorney from an owner for any purpose, except to inspect documents as provided by law;

  (7)  Induce or attempt to induce any owner to enter a contract which does not comply in all respects with sections 407.935 and 407.937.

  2.  Any violation of any of the acts enumerated in subsection 1 of this section shall be a class A misdemeanor.

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(L. 1992 S.B. 705 § 5)