44-1378. Definitions

In this article, unless the context otherwise requires:

1. "Covered service" includes:

(a) Financial counseling, including debt counseling and budget counseling to assist a homeowner in connection with the homeowner's residence in foreclosure.

(b) Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a mortgage or other lien on a residence in foreclosure.

(c) Contacting a creditor on behalf of a homeowner.

(d) Arranging or attempting to arrange an extension of the period within which a homeowner may cure the homeowner's default and reinstate the homeowner's obligation pursuant to a note, mortgage or deed of trust.

(e) Arranging or attempting to arrange any delay or postponement of the time of a foreclosure sale.

(f) Advising the filing of any document or assisting in any manner in the preparation of any document for filing with the United States bankruptcy court.

(g) Giving any advice, explanation or instruction to a homeowner that relates to the cure of a default in or the reinstatement of an obligation secured by a mortgage or other lien on the residence in foreclosure, to the full satisfaction of the obligation or to the postponement or avoidance of a foreclosure sale.

2. "Foreclosure consultant" means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation or who, for compensation, performs any covered service that the person represents will do any of the following:

(a) Prevent or postpone a foreclosure sale.

(b) Obtain any forbearance from any mortgagee or beneficiary of a deed of trust.

(c) Assist the homeowner to exercise the right of reinstatement provided in the legal documents.

(d) Obtain any extension of the period within which the homeowner may reinstate the homeowner's obligation.

(e) Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or included in the mortgage or deed of trust.

(f) Assist the homeowner in foreclosure or loan default to obtain a loan or advance of money.

(g) Avoid or ameliorate the impairment of the homeowner's credit resulting from the recording of a notice of sale or the occurrence of a foreclosure sale.

(h) Save the homeowner's residence from foreclosure.

(i) Assist the homeowner to accomplish a foreclosure reconveyance.

3. "Foreclosure reconveyance" means a transaction that involves both of the following:

(a) The transfer of title to a residence in foreclosure by a homeowner during a foreclosure proceeding by either:

(i) The transfer of an interest in the residence in foreclosure from the homeowner.

(ii) The creation of a mortgage or other lien during the foreclosure process that allows the acquirer to obtain title to the residence in foreclosure by redeeming the property as a junior lienholder.

(b) The subsequent conveyance or promise of a subsequent conveyance of an interest in the residence to the former homeowner by the acquirer, or a person acting in concert with the acquirer, that allows the former homeowner to remain in possession of the residence following the completion of the foreclosure proceeding.  For the purposes of this subdivision, "interest in the residence" includes an interest in a contract for a deed, a purchase agreement and an option to purchase or lease.

4. "Foreclosure sale" means the sale of real property to enforce an obligation secured by a mortgage or lien on the property, including the exercise of a trustee's power of sale.

5. "Holder of evidence of debt" means the person in actual possession of or otherwise entitled to enforce an evidence of debt but does not include a person acting as a nominee solely for the purpose of holding the evidence of debt or deed of trust as an electronic registry without any authority to enforce the evidence of debt or deed of trust.

6. "Homeowner" means the record owner of a residence in foreclosure at the time the notice of the pendency of an action for foreclosure or the recording of a notice of sale pursuant to section 33-808.

7. "Residence in foreclosure" means residential real property consisting of not more than four family dwelling units, one of which the homeowner occupies as a principal place of residence, and against which there is recorded an outstanding notice of the pendency of an action for foreclosure or notice of sale pursuant to section 33-808.