Overview of New Jersey Foreclosure Consultant Bond Requirements
Who needs this bond?
Applicants for a foreclosure consultant license in the state of New Jersey must post a foreclosure consultant surety bond along with their application papers.
The bond must be in an amount of $75,000 but can, in certain cases be increased by the Commissioner of the Department to up to $250,000.
Why do I need this bond?
As a foreclosure consultant, you need to be bonded as a guarantee for your compliance with 46:10B-53 et seq. of the New Jersey Revised Statutes (N.J.R.S.) also known as the Foreclosure Rescue Fraud Prevention Act.
This bond further serves the purpose of providing financial compensation to any person receiving services by the foreclosure consultant which is wronged by them as a result of the consultant’s actions.
Compensation extended to claimants under this bond agreement may be as high as the full penal sum of the bond.
Do you want to know more about how bonds work? See our ‘What is a surety bond’ guide for a detailed explanation of why businesses need a bond, and how bonds work.
See the sections below for more information regarding the cost of getting bonded, what may give rise to a bond claim, and how to apply for this bond.
Want to find out more about the bonding requirements for foreclosure consultants in New Jersey? Call us at 866.450.3412 anytime!
How Much Does It Cost to Get a New Jersey Foreclosure Consultant Bond?
What determines the cost of my bond?
The cost of your bond, or bond premium, is equal to a fraction of the full bond amount. The surety determines your premium based on how high or low your credit score is.
Further factors that may influence your bond cost include:
- Your personal and business financial statements
- Your liquidity and asset profile
- Your personal resume, work experience, and industry track record
What will my premium be?
If you have a credit score of 700 FICO or above, you can expect to get a very low rate on your bond. Such applicants are typically offered rates that vary between .75% and 1.5% of their bond amount.
Applicants with slightly lower scores can expect to get a quote upward of 1.5% and up to 5%.
To get a quick estimate of the cost of your bond, try our bond calculator or see the table below!
Surety Bond Cost Calculator
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|Surety bond name||Surety bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|New Jersey Foreclosure Consultant Bond||$75,000||$562.5-$1,125||$750-$1,875||$1,875-$3,750||$3,750-$5,625|
Can I get bonded with bad credit?
Yes, even if you have low credit, you can still get bonded. Rates for bonds under our Bad Credit Program are about 5% or more of the bond amount. Yet, if you improve your credit score, you can get increasingly better rates over time.
When Can a Claim Be Made Against My Bond?
The bond form for the New Jersey foreclosure bond states that you must:
- Comply with the provisions of the NJRS that apply to you
- Avoid committing any actions that include fraud, misrepresentation, omission, as well as any other wrongful act
- Conduct your obligations as foreclosure consultant fairly, honestly, equitably and efficiently
By violating any of the above conditions, you are running the risk of having a claim being made against your bond. When a claim is made, the surety that backs your bond will investigate the situation, and may extend compensation to claimants for as much as the full amount of our bond.
Once the claim is covered by the surety, you will need to reimburse it in full. Under a bond agreement, it is the bonded party that is ultimately liable for any claim that is made against the bond.
It is therefore advised that you strictly comply with the conditions of your bond, so as not to give rise to a claim.
Apply for Your Bond Here!
To get started with your application, complete our bond form. We’ll then get in touch with you to provide you with a free quote, along with further details on finalizing your application.
It may take up to two working days for your bond to be issued.
Call us at 866.450.3412 anytime, if you have any bond-related questions you’d like to have answered.