What Is a Foreclosure Consultant Bond?
A number of states require foreclosure consultants to undergo a licensing or registration process, so that they can prove their suitability for conducting this responsible profession. In many cases, you need to provide a foreclosure consultant bond as a part of the license and registration requirements. This is a type of license bond.
The goal of foreclosure consultant bonds is to protect your customers and the state in which you operate. In case you transgress from applicable rules and regulations, a party that suffers damages as a result of your actions can file a claim against your bond. They can seek a reimbursement up to the penal sum of the bond you have obtained.
Your surety bond is a three-party contract. Your foreclosure consultancy business is the principal that needs to get the bond. The relevant state authority that requires it is the obligee. The third entity is the surety, which provides the bond and backs your company.
Questions about Foreclosure Consultant Bond
In which states do you have to obtain such a bond?
Foreclosure consultants in California need to register with the Attorney General's Office. As a part of the process, you have to post a $100,000 surety bond.
If you’d like to operate as a foreclosure consultant in New Jersey, you have to get a license with the state Commissioner of Banking and Insurance. Initial applicants need to obtain a $75,000 bond, provided in the official bond form. At the discretion of the Commissioner, the amount may be increased up to $250,000.
Indiana foreclosure consultants have to register with the Office of the Attorney General. You have to provide a $25,000 surety bond as a part of the process. You have to use the official bond form.
How much does a foreclosure consultant bond cost?
In order to get bonded, you have to cover only a small percentage of the bond amount that you are required to post in your state. This is called the bond premium. Depending on your finances, it is usually between 1% and 5% of the required amount.
What factors affect your surety bond cost? The most important ones include your personal credit score, business financials, and any assets and liquidity that you can showcase. Your professional experience can also be considered. By examining these criteria, your surety assesses the level of risk involved in bonding you. Your price is likely to be lower if your overall application is solid.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|California foreclosure consultant bond||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
|New Jersey foreclosure consultant bond||$75,000 to $250,000||$562.5-$1,125 to $1,875-$3,750||$750-$1,875 to $2,500-$6,250||$1,875-$3,750 to $6,250-$12,500||$3,750-$7,500 to $12,500-$25,000|
|Indiana foreclosure consultant bond||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$2,500|
What if I have bad credit?
With Lance Surety Bonds you can get bonded even if you have problematic finances. We run our Bad Credit Surety Bonds program for applicants with a low credit score, tax liens, bankruptcies, and civil judgements.
The usual bad credit bond rates are between 5% and 10%. The higher price is needed to compensate for the increased bonding risk. As we work with numerous A-rated, T-listed surety companies, we are still able to provide you with a top bond price, whatever your credit score is.
How do I get a foreclosure consultant bond?
Need more details about the way bonding works? Here is our in-depth How to Get Bonded page.
For further questions, you can always contact us at (877) 514-5146. Our surety bond specialists will happily help you out.