Foreclosure Consultant? You tell me . . .

Posted October 24th, 2008 by Joe Kaiser

As a distressed home purchaser, one of the things the law forbids is for me to tell the seller I'm a "consultant."

Dear Rob,

There’s a property I’m interested in buying, and though I haven’t talked to the homeowners yet, I have put together the paperwork.

When I drive out to see them, I like having documents ready to go so if they’re inclined to accept, we can get the process underway.

But, like everyone in WA investing in foreclosures, I am confused.


Your foreclosure rescue laws requires me to provide sellers with a Distressed Home Consulting Agreement, even if I’m not there to consult. So, if I just want to buy a foreclosure property outright, because I’m in the business, such an agreement is required.

That makes no sense, but it’s hardly the problem.

And because the people I’m approaching will likely want to stay, they’ll be considered “distressed homeowners” (it’s what we’re now calling people who want to stay in their homes), and that makes me a “distressed home purchaser,” (apparently, no one knows for sure).

Now, here’s the crazy part . . .

As a distressed home purchaser, one of the things the law forbids is for me to tell the seller I’m a “consultant.”

Here’s that actual language:

A distressed home purchaser shall not: (4) Represent, directly or indirectly, that (a) the distressed home purchaser is acting as an advisor or consultant . . .WA State’s New Foreclosure Law

Am to

So, on the one hand I am required to provide sellers with a Distressed Home Consulting Agreement wherein, because of the required language in the agreement, I must call myself a “consultant.”

And on the other hand, because these are distressed homeowners (again, people wanting to stay) I am forbidden to, “directly or indirectly” represent I am acting as a consultant.

Maybe it’s just me, but wouldn’t giving sellers the required Distressed Home Consulting Agreement represent to them that I’m acting as a consultant?

And wouldn’t that make me in violation of the new law?

Am Not

What to do?

As always, I just did the very best I could, creating my own document entitled . . .

The Not A Consultant – Distressed Home Consulting Agreement

It says my services include no consulting services, even though the language required by the new law says I must call myself a consultant no less than three separate times.

Pure insanity, of course, but after careful review, I believe I am in full compliance with your new foreclosure rescue laws.


Remember when Eric Dunn called this new law “the nation’s strongest, most sophisticated protection against foreclosure scams?”


Good grief, Rob, this is completely nuts.

In the arena,

Joe Kaiser

One Response to: “Foreclosure Consultant? You tell me . . .”

  1. DaveD responds:
    Posted: October 27th, 2008 at 10:57 am


    Can’t help but think you will be supoenad for this doc as well, being Rob has already gotten pretty much everything else. I have to laugh (albeit sadly) at what has to be a growing mountain of documents around his office regarding your case.

    Thinking he tells visitors “Yep, this is the result of all the fine work we’ve been doing on that scammer case.” In comparison, wondering what the file of ACTUAL complaints looks like, being as thin and non-existant as it is.

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