Overview of Foreclosure Consultant Bond Requirements
Foreclosure consultants and counselors in a number of states must post a license surety bond to obtain their business license. States that require this type of bond include: California, Indiana, Nevada, and New Jersey. The amount of this bond varies from state to state though on average it is about $75,000 for first-time applicants.
This bond guarantees that licensed consultants will comply with the state laws that regulate their activity. It also guarantees that if any person suffers losses or damages as a result of the actions of a consultant and their violations of state law, they may seek to obtain judgment in their favor and file a claim against the bond.
If a broker violates the bond conditions, and an individual files a claim against their bond, the surety is required to take action. It will investigate the situation and likely extend compensation to claimants. Such compensation may be as high as the full amount of the bond, also called the penal sum.
If you need to know more about bonds, see our ‘What is a surety bond’ guide for a detailed explanation of why bonds are required and how they work.
See the sections below for information on the cost of your bond, what may give rise to a bond claim, and how you can get bonded.
If you’d rather consult with one of our bond professionals personally, call us at (866)-450-3412 anytime!
Foreclosure Consultant Bond Cost
Bond applicants must pay a surety bond premium in order to get bonded. The surety which issues the bond determines the premium, or bond rate, on the basis of an applicant’s personal credit score. The higher the score, the lower the premium. For higher bond amounts, such as for this type of bond, sureties will usually also want to look at the applicant’s business and personal financial statements, and more.
Applicants who have a FICO score of 700 can expect to get some of the lowest rates on their bonds. You can get a quick estimate of your bond cost by using our bond calculator or bond cost table below.
The amounts for this type of bond in the states that require it are as follows:
California foreclosure consultants must post a $100,000 bond when they apply
Indiana requires consultants to obtain a $25,000
Nevada requires a $75,000 bond to be posted initially
New Jersey also requires a $75,000 bond to be posted, though the amount may be increased over time
Surety Bond Cost Calculator
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|Foreclosure Consultant Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Nevada, New Jersey||$75,000||$562.5-$1,125||$750-$1,875||$1,875-$3,750||$3,750-$5,625|
For a precise and free of charge quote on your bond, complete our bond form!
Bad Credit Bond Program
Applicants who have a low credit score may find it more difficult to get bonded since as they may be turned down by some sureties. With us, even if you have a low score, you can get bonded through our Bad Credit Program!
Thanks to our surety partners, this program allows us to provide bonds to applicants who currently have a low score. Rates under this program are higher and serve as additional security for sureties due to the perceived higher risk of issuing bonds for applicants with lower scores. Yet, bond rates can change significantly from one bond application to the next if applicants improve their credit score.
Learn more about getting bonded with bad credit from the program page.
Claims Against This Bond
You may receive a claim against your foreclosure consultant bond if you violate its conditions.
Typically, this type of bond requires that applicants comply with their state laws that govern their type of business. State laws usually spell out the particular obligations and responsibilities that this type of consultants have towards homeowners. They also spell out the protections that homeowners are granted.
For example, the New Jersey foreclosure consultant bond specifically states that licensees “will no wrongful act, default, omission, fraud or misrepresentation and perform all obligations and undertakings honestly, fairly, equitably and efficiently when engaging in the Foreclosure Consultant business.”
Further, the bond may specifically state, such as in Nevada, that it will serve for payments for any final judgments or orders as well as any expenses that become due or owed to the state.
If a consultant violates the conditions of their bond agreement and gives rise to a claim, the surety that backs the bond will step in. It will evaluate the situation and likely pay out compensation to claimants. After the surety has covered the claim, the bonded consultant will need to reimburse it in full.
Due to the high amounts for these bonds it is highly undesirable for a foreclosure consultant to give rise to a claim. Claims can lead to serious financial and reputational damage. That’s why it is always best to comply with all the conditions of the bond and state laws.
Apply Here to Get Bonded!
Get started with your application by completing our bond form. We will provide you with a free quote on your bond, along with full information on completing the application process.
It will take up to two working days for your bond to be issued. After that, we will send it to you via standard mail and email.
Learn more about this type of bond by speaking to one of our bond experts at (866)-450-3412!