What Is a New Jersey Foreclosure Consultant Bond?
In case you want to work as a foreclosure consultant in New Jersey, you have to obtain a license from the Department of Banking and Insurance. Among the criteria that you have to satisfy is obtaining a foreclosure consultant bond. It is a prerequisite for getting your New Jersey foreclosure consultant license.
The surety bond is a security instrument whose goal is to safeguard the interests of your customers and the state. It can be used as a compensation mechanism in case you transgress from the law.
Your New Jersey surety bond is a contractual agreement that is signed between three parties. The principal is your foreclosure consultancy company. The obligee that requires you to get bonded is the Department of Banking and Insurance. The surety is the third party that provides the bond for you.
Questions about Foreclosure Consultant Bond in New Jersey
In which cases is this bond required?
All entities that want to operate as foreclosure consultants in New Jersey have to undergo a licensing procedure with the Department of Banking and Insurance. Posting a $75,000 surety bond is one of the main requirements. You should present it in the official bond form.
The Department may increase the bond amount up to $250,000 if it deems it necessary. The bond guarantees your compliance with Title 46 of the New Jersey Revised Statutes, the Foreclosure Rescue Fraud Prevention Act, as well as any other applicable laws.
What is the price of a New Jersey foreclosure consultant bond?
The price that you have to pay for your surety bond depends on the bond amount you have to obtain. The surety bond cost is a small percentage of it, called the bond premium. The usual rates for applicants with good credit are between 1% to 5%.
Once you apply with a surety, it needs to examine your personal and business finances in order to assess how risky it is to get you bonded. The factors that matter include your credit score, business documents, assets, liquidity, and even professional experience. The more stable your overall profile is, the smaller your premium is going to be.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|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|
Is it possible to get bonded with bad credit?
Yes, you can get the bond you need with Lance Surety Bonds - even if you struggle with problematic finances. We have created our Bad Credit Surety Bonds program for applicants that have a low credit score, tax liens, bankruptcies, or civil judgements.
The rates for this program are between 5% and 10%. The price is higher due to the increased bonding risk involved. Still, as we foster close relationships with a number of A-rated, T-listed surety companies, we have access to top bonding options. We can select the one that best fits your circumstances.
How do I get bonded?
You can learn additional details about the bonding process by reviewing our extensive How to Get Bonded guide.
If you have further questions, or need help with your bond application, our experts are here to help you. You can call us at (877) 514-5146.
How are bond claims handled for foreclosure consultants?
If you fail to comply with the rules set forth in the New Jersey Foreclosure Rescue Fraud Prevention Act and other applicable laws, you can get a claim against your surety bond. This is the method for harmed parties to seek a compensation for the damages they have suffered due to your illegal or unethical actions as a foreclosure consultant.
The maximum penal sum of your bond is what claimants can seek as a reimbursement. According to the bond indemnity agreement, your surety may cover the claim at first, but you are fully liable for repaying it. This makes bond claims a serious financial threat for your business finances and integrity. Thus, the wisest course of action is avoiding problematic situations that can lead to them.