Missouri Laws 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;
Attorney's Note
Under the Missouri Laws, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class A misdemeanor | up to 1 year | up to $2,000 |
Terms Used In Missouri Laws 407.940
- Contract: A legal written agreement that becomes binding when signed.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Property: includes real and personal property. See Missouri Laws 1.020
(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.