CHAPTER 479-B FORECLOSURE CONSULTANTS AND PRE-FORECLOSURE CONVEYANCES
Section 479-B:1
479-B:1 Definitions. –
In this chapter:
I. "Foreclosure consultant" means any person, or any person acting in concert with such person, or any agent or employee of such person who provides a foreclosure consulting service.
II. "Foreclosure consulting contract" means a written, oral, or constructive agreement between a foreclosure consultant and a homeowner for the provision of any foreclosure consulting service or pre-foreclosure conveyance.
III. "Foreclosure consulting service" means:
(a) An effort undertaken on behalf of or for the benefit of a homeowner to delay or prevent the loss of a home because of a mortgage default, delinquency, foreclosure, or execution of a tax deed.
(b) Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a lien on a residence in foreclosure;
(c) Contacting mortgagees or other creditors secured by a homeowner's primary residence on behalf of the homeowner;
(d) Arranging or attempting to arrange for an extension of the period within which a homeowner may cure the homeowner's default and reinstate the homeowner's obligation;
(e) Arranging or attempting to arrange for any delay or postponement of the sale of a residence in foreclosure;
(f) Arranging or facilitating the purchase of a homeowner's legal or equitable title or any property interest in a homeowner's residence within 30 days of:
(1) The publication or letter of notice of a foreclosure sale; or
(2) The letter notice of a municipality's intent to execute a tax deed.
(g) Arranging or facilitating any transaction through which a homeowner will become a lessee, optionee, life tenant, partial homeowner, or vested or contingent remainderman of the homeowner's residence;
(h) Arranging or facilitating the sale of a homeowner's residence or transfer of legal title and any property interest in a homeowner's residence, in any form, to another party as an alternative to foreclosure;
(i) Arranging for a homeowner to have an option to repurchase the homeowner's residence after a sale or transfer; or
(j) Arranging for or facilitating a homeowner remaining in the homeowner's residence as a tenant, renter, or lessee.
IV. "Pre-foreclosure purchaser" means any person or any person acting in concert with such person, who acquires title or possession of a deed or other interest in a residence in foreclosure as a result of a pre-foreclosure conveyance, or any person who participates in a joint venture or joint enterprise involving a pre-foreclosure conveyance.
V. "Pre-foreclosure conveyance" means a transaction involving:
(a) The transfer of title to real property or a beneficial interest in the property by a homeowner to delay or prevent a mortgage default or delinquency, foreclosure, or execution of a tax deed, either by transfer of any interest from the homeowner to another party or by creation of a mortgage, trust, or other lien or encumbrance during the foreclosure process, that allows the acquirer to obtain legal or equitable title to all or part of the property; and
(b)(1) The transaction includes the subsequent conveyance, the promise of a subsequent conveyance, or a right to a subsequent conveyance of an interest back to the homeowner from the acquirer or a person acting in participation with the acquirer, including an interest in a contract for deed, purchase agreement, land installment sale, contract for sale, option to purchase, sale/leaseback, trust, or other contractual arrangement; or
(2) The transaction does not pay or otherwise fully satisfy the homeowner's obligations under any existing note and mortgage securing such note.
VI. "Homeowner" means any owner or co-owner of a residence who is facing the loss of a home due to default, acceleration, or foreclosure of a deed of trust, mortgage, lien, or similar instrument or due to the notice, auction, or execution of a tax deed.
VII. "Person" means an individual, corporation, governmental subdivision or agency, business trust, estate, trustee for a trust, partnership, association, limited liability company, joint venture, government, or any other legal or commercial entity or agent.
VIII. "Residence in foreclosure" means residential real property consisting of not more than 4 dwelling units, one of which the owner occupies as his or her principal place of residence, where a loan secured by the home is in default, or where real property taxes are delinquent.
IX. "Settlement" means an in-person meeting with the homeowner to complete final documents incident to the sale or transfer of real property, or the creation of a mortgage or equitable interest in real property, conducted by a settlement agent who is not employed by or an affiliate of the pre-foreclosure purchaser.
X. "Execution of tax deed" means the procedures by which residential property is executed to a tax lienholder under RSA 80:76 or executed to a tax sale purchaser under RSA 80:38.
XI. "Short sale" means the sale of a homeowner's residence in which the proceeds of the sale, less closing costs, are less than the amount owed, creating a deficit to the seller and in which the sale also results in a short payoff to one or more of the seller's creditors.
Source. 2007, 322:1. 2011, 145:1, eff. Aug. 6, 2011.